Which ONE of the following is not a valid reason for a decrease in gross profit margin?
A: A major customer renewed their contract during the year following a competitive tender process
B: New plant and equipment used in the manufacturing process has been purchased in the year, which has increased the depreciation expense
C: Delivery costs to customers have risen following an increase in the rates charged by couriers
D: A national recession has led to sales prices being cut in response
A: A major customer renewed their contract during the year following a competitive tender process
B: New plant and equipment used in the manufacturing process has been purchased in the year, which has increased the depreciation expense
C: Delivery costs to customers have risen following an increase in the rates charged by couriers
D: A national recession has led to sales prices being cut in response
举一反三
- Which of the following events is most likely to have caused the increase in gross profit as a percentage of sales? A: An increase in sales volume. B: A decrease in sales volume. C: Overstatement of the closing inventory. D: Understatement of the closing inventory.
- A company has the following summarised SOPL for the year. $Sales revenue 70,000 cost of sales (42,000)Goss profit 28,000expenses (21,000)Net profit 7,000 What is the company's gross profit margin for the year? A: 10% B: 40% C: 25% D: 17%
- Which of the following costs belongs to Selling and Administrative Costs? A: Direct Labor Cost B: Direct Material Cost C: Depreciation of manufacturing equipment D: Sales Commissions
- Which of the following describes a long position in an option? A: A position where there is more than one year to maturity B: A position where there is more than five years to maturity C: A position where an option has been purchased D: A position that has been held for a long time
- Which of the following cities has not been among the major fashion capitals? A: Paris B: Milan C: New York D: Rome