Relevance of the gross profit margin depends upon

A) the accuracy of the gross profit percentage
B) the net sales
C) applying the overall profit margin to each individual department
D) averaging prior periods' net sales and total sales to verify which is best to use

The relevance of the gross profit margin depends upon the accuracy of the gross profit percentage. This is because the gross profit margin is calculated by subtracting the cost of goods sold from the net sales and dividing the result by the net sales. If the gross profit percentage used in this calculation is inaccurate, the resulting gross profit margin will also be inaccurate. Therefore, it is important to ensure that the gross profit percentage used in calculating the gross profit margin is as accurate as possible.