Which one of the following factors would cause the gross profit % to rise? A. Increasing sales B. Increasing costs C. Increased competition D. Increased supplier discounts

During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit? Why?

which one of the following will tend to increase the length of the credit period? Decrease in Product cost Decrease in consumer demand  Decrease in collateral value Increase in credit risk Increase in product standardization

When sales volume is rising do companies with a larger percentage of variable expenses or companies with a larger percentage of fixed expenses experience a larger percentage increase in profit? Explain your reasoning.

The margin of safety can be defined as the amount by which sales can decrease beforelosses are incurred by the company.TRUEFALSE

A negative trend in Gross Margin may indicate that Cost of Sales is decreasing.  Group of answer choices True False

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratio

Contribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenue

What can the weighted average contribution margin ratio be used for? To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.

1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volume