Ramos Company Included the Following Information in Its Annual Report

question 69

Multiple Choice

Ramos Company included the following information in its annual report:
$\begin{array}{|l|l|l|l|}\hline & 2011 & 2010 & 2009 \\\hline \text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \\\hline\text { Cost of goods sold } & 115,000 & 102,500 & 100,000 \\\hline\text { Operating expenses } & 50,000 & 50,000 & 45,000 \\\hline\text { Net incoume } & 13,400 & 10,000 & 10,500 \\\hline \end{array}$
- Refer to the information for Ramos Company. In a common size income statement for 2009, the cost of goods sold are expressed as:

• A) 64.3%
• B) 40.0%
• C) 87 %
• D) 103%

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Definitions:

Relative Worth

The perceived value or importance of a job, role, or task in relation to others within the same organization, often influencing compensation and status.

Internal Equity

The practice of ensuring that compensation levels are fair and equitable within the same organization when compared to similar positions or roles.

Evaluation Techniques

Methods or procedures used to assess the effectiveness, value, or performance of a project, employee, or system.

Controlling Costs

The practice of managing and reducing business expenses through efficient operations and budget management to increase profitability.