Which of the Following Would Most Likely Cause the Net

question 120

Multiple Choice

Which of the following would most likely cause the net income percentage to increase?

• A)Cost of Goods Sold as a percentage of net sales increases.
• B)Operating expenses as a percentage of net sales increases.
• C)Gross profit as a percentage of net sales decreases.
• D)Operating expenses as a percentage of net sales decreases.

---

Definitions:

Performance Pay

A compensation system where an employee's pay is based on their job performance, often involving bonuses or other incentives.

Indirect Pay Plan

A compensation strategy that includes non-monetary benefits such as health insurance, retirement plans, and paid time off, as opposed to direct financial payments like wages and salaries.

Unionized Employees

Workers who are members of a labor union, which represents their interests in negotiations with employers over wages, benefits, and working conditions.

Services And Benefits

The range of additional perks and supports that an employer offers to its employees aside from salary, which can include health insurance, retirement saving plans, and wellness programs.