A company's cost of merchandise sold increased by 6.7% over the prior year. Management
A) considers this to be an unfavorable trend.
B) cannot evaluate this change without knowing the change in sales.
C) should reduce the amount of merchandise purchased during the next year.
D) should reduce operating costs to maintain a constant operating margin.
Correct Answer:
Verified
Q18: The current ratio assumes a business could
Q19: Operating margin is also referred to as
A)
Q20: The price-earnings ratio is an example of
Q21: To rate the ability of a business
Q22: Gross margin can be increased by
A) selling
Q23: Vertical analysis ratios are an example of
Q24: The least likely factor a business will
Q25: The ratio that gives the best indication
Q26: The debt ratio is an example of
Q27: Gross margin is also referred to as
A)
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