Which of the Following Statements Is Incorrect

question 54

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 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:

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into four elements: Product, Price, Place, and Promotion.

Product Line Depth

The variety of products or versions offered within a particular line to cater to different customer needs or preferences.

Customer Relationship Management

A strategy for managing interactions with customers, utilizing data analysis about customers' history with the company to improve business relationships.

Brand Awareness

The degree to which consumers are familiar with the qualities or image of a particular brand of goods or services.