If a firm can reduce its cost of goods sold and continue to sell its product for the same price,we would expect the firm to enjoy an increase in its:
A)revenue.
B)liabilities.
C)employee turnover.
D)gross profit.

Question

Quizplus · Accepted Answer

If a firm can reduce its cost of goods sold and continue to sell its product for the same price, it would result in an increase in the gross profit of the firm. Gross profit is the revenue minus the cost of goods sold, so reducing the cost of goods sold would directly increase the gross profit.

If a Firm Can Reduce Its Cost of Goods Sold