The Gross Profit Ratio Is Useful to the Manager for Each

question 17

Multiple Choice

The gross profit ratio is useful to the manager for each of the following purposes except that:

• A)it can be used to determine the selling price to set for an item.
• B)it can be used to estimate the amount of inventory lost in a fire.
• C)it can be used to determine the amount available from a given amount of revenue to cover operating expenses.
• D)it can be used to estimate the amount of operating expenses for a period.

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Definitions:

Liberal Theory

Liberal theory advocates for individual rights, free trade, and minimal government intervention in the economy, emphasizing individual freedom and equality.

Conservative Theory

A political and social philosophy that promotes retaining traditional social institutions in the context of culture and civilization.

Subsist

To maintain or support oneself, especially at a minimal level.

Welfare Mothers

Term often used to describe single mothers who receive government assistance, typically through cash aid, to help support their families.