Which of the Following Statements Regarding Gross Profit Percentage Is

question 167

Multiple Choice

Which of the following statements regarding gross profit percentage is not correct?

• A)It is possible for a company to increase both its gross profit percentage and net income without increasing the dollar amount of sales.
• B)A decreasing gross profit percentage means that the company is selling products for a greater markup over its cost.
• C)The gross profit percentage measures the percentage of profit earned on each dollar of sales.
• D)Gross profit percentages vary across industries.

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide other financial services.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Computer

An electronic device capable of manipulating data or information, allowing for storage, retrieval, and processing to perform various tasks.