Assume That Net Sales Are Increasing Faster Than the Rate

question 45

Multiple Choice

Assume that net sales are increasing faster than the rate of inflation,and that the company's gross profit rate is rising.Of the following,the most logical conclusion is that:

• A)The company's cost of purchasing merchandise is rising rapidly.
• B)Operating expenses are falling.
• C)Demand for the company's products is very strong.
• D)The company has achieved an increase in sales volume by reducing its sales prices.

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Definitions:

Effective Communication

The transmission of information in such a way that the message is clearly understood by all parties involved, minimizing misunderstandings.

Sender's Message

The sender's message is the information or intention that the sender wants to communicate to the receiver, often formulated through language, body language, or other forms of communication.

Minimum Costs

The lowest possible expense incurred in the production of goods or services or in the achievement of a specific action or outcome.

Manager

A person who supports, activates, and is responsible for the work of others.