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An unexplained increase in the ratio of gross profit to sales may suggest which of the following possibilities? (Gross profit ratio = 1-(costs of goods

An unexplained increase in the ratio of gross profit to sales may suggest which of the following possibilities? (Gross profit ratio = 1-(costs of goods sold/sales))

Overstated costs of goods sold.

Understated costs of goods sold.

Selling, general, and administrative expense is misclassified as cost of goods sold

Overstated purchase of inventory.

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