A High Gross Profit Percentage Means

question 99

Multiple Choice

A high gross profit percentage means:

• A) the cost of goods sold was relatively low.
• B) the cost of goods sold was relatively high.
• C) selling expenses are very low.
• D) general and administrative expenses are very high.
• E) selling expenses are very high.

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Definitions:

Operation Size

The scale or scope of a business's activities, ranging from small, single-location operations to large, multinational corporations.

Diseconomies of Scale

A situation where a company or organization grows so large that the costs per unit increase.

Long-run

A period in economics sufficient for all markets to adjust to changes, including those made in physical capital or production capacities.

Average Total Cost

The total cost of producing a particular quantity of output divided by the quantity of output produced, encompassing both fixed and variable costs.