If Net Sales Are $800000 and Cost of Goods Sold

question 168

True/False

If net sales are $800000 and cost of goods sold is $600000 the gross profit rate is 25%.

---

Definitions:

Variances

The difference between planned or expected financial outcomes and the actual results.

Direct Materials

Raw materials that directly become a part of the finished product and can be easily traced to it.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs, used for budgeting and cost control.