The ratio of total purchases to sales (the percentage of dollars paid out to suppliers as a percentage of sales)varies little from industry to industry.

Question

Nishu Patel · Accepted Answer

Final Answer : False, Explanation :  The ratio of total purchases to sales can vary greatly from industry to industry. For example, a manufacturing company may have a much higher ratio since they have to purchase raw materials to create their products, while a software company may have a much lower ratio since their products are created primarily through labor costs.

The ratio of total purchases to sales (the percentage of dollars paid out to suppliers as a percentage of sales)varies little from industry to industry.

Definitions

Learning Objectives

Learning Objectives

Related questions