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Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars 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

Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars 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

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 2MC: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)...
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Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars 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
Transcribed Image Text:Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars 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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