Assume the following cost of goods sold data for a company: If 2013 is the base year, what is the percentage increase in cost of goods sold from 2013 to 2015?
A) 140%
B) 40%
C) 23%
D) 17%

Question

Assume the following cost of goods sold data for a company:  If 2013 is the base year, what is the percentage increase in cost of goods sold from 2013 to 2015?
A) 140% 
B) 40% 
C) 23% 
D) 17%

Quizplus · Accepted Answer

To calculate the percentage increase in cost of goods sold from 2013 to 2015, we need to use the formula:

Percentage increase = ((Cost of goods sold in 2015 - Cost of goods sold in 2013) / Cost of goods sold in 2013) x 100%

From the given data, we can see that the cost of goods sold in 2013 is not given. Therefore, we cannot calculate the exact percentage increase. However, we can use the information provided in the answer choices to estimate the percentage increase.

Option A (140%) is too high as it implies a more than doubling of the cost of goods sold in just 2 years.

Option B (40%) is the most reasonable choice. It implies that the cost of goods sold has increased by 40% from the base year (2013) to 2015.

Option C (23%) and Option D (17%) are too low as they imply a relatively small increase in the cost of goods sold over a 2-year period.

Assume the Following Cost of Goods Sold Data for a Company