Which of the Following Would Increase the Gross Profit Ratio

question 156

Multiple Choice

Which of the following would increase the gross profit ratio?

• A)The company reduces operating expenses.
• B)The cost of inventory increases.
• C)The number of units sold increases.
• D)The sales price of a product increases by a higher percentage than does its cost of goods sold.

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Definitions:

Material Inputs

The raw materials, components, and supplies used in the manufacturing process to produce goods.

Specific Processes

Custom or particular production or operational methods used in creating goods or providing services.

Transferred Costs

Expenses that are moved from one department to another within an organization, or from one stage of production to another, often reflecting internal transactions.

Multidepartment Process

A workflow or operation that involves multiple departments within a business, often requiring cross-functional collaboration to achieve a common goal.