The Gross Profit Rate Is Calculated As

question 33

Multiple Choice

The gross profit rate is calculated as:

• A) cost of goods sold divided by net sales revenue.
• B) net sales revenue minus gross profit on sales.
• C) net sales revenue minus cost of goods sold.
• D) gross profit divided by net sales revenue.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.

Variable Costs

Expenditures that increase or decrease in tandem with production volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Depreciation Expense

Apportioning the value of a concrete asset throughout its operational life.