A decrease in which one of the following will increase the gross margin?
A)taxes
B)sales
C)depreciation
D)cost of goods sold
E)fixed assets

Question

Quizplus · Accepted Answer

Gross margin is calculated as sales revenue minus the cost of goods sold (COGS). Therefore, a decrease in the cost of goods sold will directly increase the gross margin by increasing the difference between sales revenue and COGS.

A Decrease in Which One of the Following Will Increase