As Part of Audit Planning,you Have Calculated Gross Margin for the Last

question 34

Multiple Choice

As part of audit planning,you have calculated gross margin for the last five years and compared gross margin to industry averages.Your client's gross margin has increased by about 5% in the current year,while the industry gross average has declined.One possible cause of this increased gross margin is

• A)higher cost of goods sold.
• B)increased bad debt expenses.
• C)fictitious revenue.
• D)fictitious expenses.

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Definitions:

Export Industries

Sectors of a country's economy that produce goods or services for sale to foreign countries.

Licensing Agreement

A legal contract whereby one party (the licensor) allows another party (the licensee) to use its intellectual property, brand, or product under specified conditions.

Global Business

The conduction of trade, production, or services across national borders, involving the planning and execution of transactions on an international scale.

Transborder Entrepreneurship

Involves creating and managing business ventures that operate across national borders, leveraging global market opportunities.