A paragraph in the recent financial statements of Winfred Discount Stores begins: 'Advertising, selling, administrative and general

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A paragraph in the recent financial statements of Winfred Discount Stores begins: 'Advertising, selling, administrative and general expenses increased as a percentage of sales in 20X1 compared to 20X0. This occurred because of the slower growth rate of sales during the year as compared to prior years.'

Required:

How does the second sentence explain the first? Explain in more detail how this could happen.

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Accounting Information For Business Decisions

ISBN: 9780170253703

2nd Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons

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