23) The gross profit percentage is an indication of how:

well management is controlling expenses.

measures the percentage of profit earned on each dollar of sales.

much cash is generated per dollar of sales.

efficient management is in utilizing assets.

26) Which of the following statements about inventory classifications is not correct?

Inventory may include materials used in producing goods for sale.

Manufacturers hold three types of inventory that are referred to as raw materials inventory, work in process inventory, and finished goods inventory.

Inventory is classified as a long-term asset on the balance sheet.

Merchandisers buy inventory in finished form ready for resale.

27) In a period of rising prices, the inventory costing method that will cause the company to have the lowest cost of goods sold is:

LIFO.

FIFO.

Weighted average.

Specific identification.

28) In a period of falling prices, the inventory costing method that will cause the company to have the lowest cost of goods sold is:

LIFO.

FIFO.

Weighted average.

Specific identification.