Anthony Inc Requirements:
A

question 64

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Anthony Inc.reported the following amounts on their 2011 and 2010 income statements:
$$\begin{array} { l r r } & \underline { 2011 } & \underline { 2010 } \\\text { Net Sales } & \$ 20,438 & \$ 20,367 \\\text { Cost of sales } & 7,943 & 8,198\end{array}$$ Requirements:
A.Compute the gross profit percentage for both years.
B.Provide at least two potential causes for the change in Anthony's gross profit percentage.

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Definitions:

Percentage-of-Completion

An accounting method that recognizes revenue and expenses of long-term projects as a percentage of work completed during the period.

Product Costs

Costs directly associated with the production of goods, including materials, labor, and overhead expenses.

Inventoriable Costs

These are costs associated with the acquisition or production of goods, which are initially recorded as inventory on the balance sheet and expensed as cost of goods sold when the goods are sold.

Direct Costs

Expenses that can be directly linked to the production of specific goods or services, such as materials and labor.