An Increase in a Company's Gross Profit Margin Indicates That

question 16

Multiple Choice

An increase in a company's gross profit margin indicates that the company

• A) has increased sales volume.
• B) has increased selling prices.
• C) has decreased its cost of goods sold.
• D) potentially any of the above could have occurred.

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Definitions:

Inflation Rate

The annual percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Probability Distribution

A statistical method charting all conceivable values and odds for a random variable over an agreed-upon range.

Expected Standard Deviation

The forecasted volatility of an asset's returns, predicting the spread of these returns over a certain period.

Demand for Loans

The desire or willingness of individuals or businesses to borrow money from financial institutions at given rates and terms.