What is margin in SAP CEC-MKT-ISG - Insight?

SAP Term: margin

• Component: CEC-MKT-ISG

• Component Name: Insight

• Description: The difference between sales revenue and variable cost. Margins are calculated for market segments and are needed in decision making.

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• Key Concepts:
  Margin is a term used to describe the difference between the cost of a product or service and the price at which it is sold. It is also known as gross profit margin or gross margin. It is expressed as a percentage of the selling price and is calculated by subtracting the cost of goods sold from the revenue generated from the sale.
  
  How to use it:
  In SAP CEC-MKT-ISG Insight, margin can be used to measure the profitability of a product or service. It can be used to compare different products or services and identify which ones are more profitable. It can also be used to identify areas where costs can be reduced in order to increase profitability.
  
  Tips & Tricks:
  When calculating margin, it is important to consider all costs associated with the product or service, including overhead costs such as marketing and administrative expenses. Additionally, it is important to consider any discounts or promotions that may have been offered when calculating margin.
  
  Related Information:
  Margin can be used in conjunction with other metrics such as return on investment (ROI) and net profit margin (NPM) to gain a better understanding of a product or service’s profitability. Additionally, margin can be used to compare different products or services within an organization or across different organizations.