A Company Has Net Sales of $56,700 and a Cost

question 116

Multiple Choice

A company has net sales of $56,700 and a cost of goods sold of $26,700.The company's gross profit percentage is approximately:

• A)52.9%.
• B)47.1%.
• C)89.0%.
• D)189%.

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Definitions:

Standard Costs

The planned cost of manufacturing a product, which includes material, labor, and overhead costs, used for budgeting and performance evaluation.

Accounting System

A structured process used to record, track, and manage financial transactions and the financial position of an entity.

Standards

Preset criteria or benchmarks used to measure, compare, or judge quality, performance, or compliance.

Fully Efficient

Describes a state in which resources, including time, labor, and materials, are optimized to achieve maximum productivity and minimal waste in operations or processes.