Industrial Engineer Engineering and Management Solutions at Work

April 2013    |    Volume: 45    |    Number: 4

The member magazine of the Institute of Industrial Engineers

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Management by Paul Engle

Industrial Engineer's monthly column about engineering management (April 2013) 

Understanding gross margin

Most companies employ financial measures such as growth in revenue, after tax profit, and return on investment to track their company’s financial and operational health. Gross margin, which is the difference between the price to the consumer and the cost of providing the good or service, also can be an important measure. Many believe that gross margin communicates the value that a company provides compared to its competitors.


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