An error in cost of goods sold has ______ impact on gross profit and profit.

Name: An error in cost of goods sold has ______ impact on gross profit and profit.
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Question

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An error in cost of goods sold has the opposite impact on gross profit and profit. This is because an increase in cost of goods sold will decrease gross profit and ultimately decrease profit, while a decrease in cost of goods sold will increase gross profit and ultimately increase profit.

An Error in Cost of Goods Sold Has ______ Impact