Which of the following statements is correct?
A)When cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B)It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.
C)If gross margin percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
D)If gross margin percentage increases from one year to the next, then the net income percentage will also increase from one year to the next.

Question

Quizplus · Accepted Answer

If the percentage increase in sales is greater relative to the percentage increase in cost of goods sold, cost of goods sold relative to sales will decrease.

Which of the Following Statements Is Correct