Which of the Following Statements Is Incorrect

question 85

Multiple Choice

Which of the following statements is incorrect?

• A)If selling and administrative expenses as a percentage of sales increases,then gross profit percentage will decrease.
• B)If the cost of goods sold percentage decreases and other expenses do not change,then net profit margin will increase as a percentage of sales.
• C)If sales dollars decrease,a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
• D)It is possible that when selling and administrative expense in dollars decrease,selling and administrative expenses as a percentage of sales will increase.

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Definitions:

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The arrangement of text or other elements in a line that follows a specific direction or orientation.

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