If Vertical Analysis,using Net Sales as the Base,shows a 67

question 93

Multiple Choice

If vertical analysis,using net sales as the base,shows a 67% figure for cost of goods sold in the prior year,and a 70% figure for the current year,this would always mean that:

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

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