Financial Information Is Presented Below The Gross Profit Rate Would Be
A)

question 94

Multiple Choice

Financial information is presented below: $$\begin{array} { l r } \text { Operating expenses } & \$ 28,000 \\\text { Sales returns and allowances } & 7,000 \\\text { Sales discounts } & 3,000 \\\text { Sales revenue } & 150,000 \\\text { Cost of goods sold } & 91,000\end{array}$$ The gross profit rate would be

• A) .33.
• B) .35.
• C) .65.
• D) .27.

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and regulators.

Direct Manufacturing Cost

Expenses that are directly attributable to the production of goods, including materials and labor directly involved in the manufacture.

Period Costs

Expenses that are not directly tied to the production process and are instead charged to the period in which they are incurred.

Financial Reporting

Developing communications that display an organization’s monetary status to those in charge, investors, and the government.