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profit margin

Oliver Wyman case: On the Right Track
New answer on Jun 27, 2021
3 Answers
1.2 k Views
Yosha asked on Jun 21, 2021

does the profit margin include all the costs( fixed costs)?

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Ian
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Content Creator
replied on Jun 22, 2021
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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.

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Yosha on Jun 22, 2021

but as an accountant l know the concept gross profit only include the COGS

Pedro
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replied on Jun 21, 2021
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

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.

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Anonymous replied 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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