Purpose
The purpose of margins is "to determine the value of incremental sales, and to guide pricing and promotion decision."
"Margin on sales represents a key factor behind many of the most fundamental business considerations, including budgets and forecasts. All managers should, and generally do, know their approximate business margins. Managers differ widely, however, in the assumptions they use in calculating margins and in the ways they analyze and communicate these important figures."
Read more about this topic: Gross Margin
Famous quotes containing the word purpose:
“Whoever considers morality the main objective of human existence, seems to me like a person who defines the purpose of a clock as not going wrong. The first objective for a clock, is, however, that it does run; not going wrong is an additional regulative function. If not a watch’s greatest accomplishment were not going wrong, unwound watches might be the best.”
—Franz Grillparzer (1791–1872)
“The purpose of punishment is to improve those who do the punishing—that is the final recourse of those who support punishment.”
—Friedrich Nietzsche (1844–1900)
“It is my purpose to disclose the mystery at once, and to ask you to look for your interest,—should you choose to go on with my chronicle,—simply in the conduct of my persons, during this disclosure to others.”
—Anthony Trollope (1815–1882)