Which of the following statements is true?

A. When cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B. It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.
C. If gross margin percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
D. Both B and C are true.
E. All of the above are true.

Answer: B. It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.

Business

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Mickelson Company acquired an 80% interest in Footjoy on January 1, Year 1, for $1,200,000. The book value of Footjoy's identifiable net assets at that date was $900,000. One depreciable asset (10-year life) had a fair value that exceeded its book value by $100,000. Footjoy reported $60,000 of net income in Year 1 and paid $40,000 in dividends. What was the noncontrolling interest in NET ASSETS as of the date of DDEC 31, Year 1?

a. $242,000 b. $302,000 c. $304,000 d. $310,000

Business

The Cash T-account has a beginning balance of $26,000. During the year, $122,000 was debited and $120,500 was credited to the account. What is the ending balance of cash?

A) $18,500 B) ($2,500) C) $27,500 D) Cannot be determined from the information give

Business