Which of the following statements is true with regard to the gross profit ratio? . An increase

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Which of the following statements is true with regard to the gross profit ratio?

. An increase in the gross profit rate may indicate that a company is efficiently managing its inventory.

. An increase in cost of goods sold would increase the gross profit rate (assuming sales remain constant).

. An increase in selling expenses would lower the gross profit rate.

a. 1

b. 2

c. 1 and 2

d. 1 and 3

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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