Which of the Following Statements Regarding Gross Profit (Margin)is True

question 98

Multiple Choice

Which of the following statements regarding gross profit (margin) is true?

• A) Gross margin is net sales minus cost of goods sold.
• B) A company sells $10,000 of goods. The gross profit percentage is 32%. Net income would be $3,200.
• C) Gross profit is recorded by a credit to the gross profit account.
• D) If net sales are $100 and cost of goods sold is $50 then the gross profit percentage is 100%.

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Definitions:

Statistical Analysis

The process of collecting, examining, interpreting, and presenting numerical data to discover underlying patterns and trends.

Specific Criteria

Distinct or particular standards, requirements, or conditions used for making decisions, evaluations, or selections.

Comparison Groups

In research, groups that are compared to the experimental group to measure the effect of a treatment or intervention.

Goal Displacement

The phenomenon where the primary goal is overshadowed by a secondary goal, leading to a shift in focus away from the original objective.