Which of the Following Statements Is Incorrect

question 85

Multiple Choice

Which of the following statements is incorrect?

• A)If selling and administrative expenses as a percentage of sales increases,then gross profit percentage will decrease.
• B)If the cost of goods sold percentage decreases and other expenses do not change,then net profit margin will increase as a percentage of sales.
• C)If sales dollars decrease,a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
• D)It is possible that when selling and administrative expense in dollars decrease,selling and administrative expenses as a percentage of sales will increase.

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Definitions:

Retail Market

A marketplace where goods and services are sold directly to consumers, typically involving transactions of smaller quantities.

World Supply

Refers to the total amount of a particular good or service that is available for purchase on the global market.

Futures Market

A financial market where participants can buy and sell contracts for the delivery of assets at a future date, often used for hedging and speculation.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.