does the profit margin include all the costs( fixed costs)?
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but as an accountant l know the concept gross profit only include the COGS
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Ian
on Jun 22, 2021
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Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi there,
Remember there is gross profit margin and a product's profit margin.
Gross profit margin takes into account all costs. A product's profit margin takes into account its attributable costs, aka COGS.
1 comment
Yosha
on Jun 22, 2021
Pedro
on Jun 21, 2021
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BAIN | EY-Parthenon | Roland Berger | Former Principal | FIT & PEI Expert
Yes, profit margin concept includes all costs.
If you only want to consider variable costs on the margin, then you are referring to CONTRIBUTION margin.
Deleted user
on Jun 27, 2021
Check out Investopedia for details on financial metrics. Bottom line is that there are many different types of profit margins. Operating margin, contribution margin, Gross margin, net margin.
Of these, operating, contribution and gross margins would include variable costs only, net margin will include all costs.
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