If Net Income Is Rising,but Net Sales Revenue and the Gross

question 21

Multiple Choice

If net income is rising,but net sales revenue and the gross profit percentage remain the same,then:

• A)operating expenses are falling.
• B)operating expenses are rising.
• C)cost of goods sold is falling.
• D)cost of goods sold is rising.

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Definitions:

Volume Of Activity

A measure of the quantity of work performed or production completed, often influencing costs and revenues in businesses.

Policies And Procedures

Systematic guidelines set by an organization to direct and align its activities and decisions in a consistent manner.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Model

A simplified representation, often mathematical, of a system or process used to analyze behavior, make predictions, or inform decision-making.