Assume You Are Using Net Sales as the Base in Vertical

question 108

Multiple Choice

Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2013 is 67%, and is 70% in 2014. This would always indicate that:

• A) gross margin has declined
• B) cost of goods sold as a percentage of net sales has increased
• C) the dollar amount of cost of goods sold has increased
• D) gross margin has declined, cost of goods sold as a percentage of net sales has increased, and the dollar amount of cost of goods sold has increased

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Definitions:

Industry Standards

Industry standards refer to the established norms and technical specifications followed by companies in a particular sector to ensure quality, safety, and interoperability.

Incomplete Contract

A contract that lacks certain terms and conditions or is ambiguous in its provisions, often leading to disputes or requiring external interpretation.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by all parties to be legally enforceable.

Interest in Land

Interest in land refers to any legal right or ownership claim to real property, including but not limited to ownership, usage, or leasehold interests.