If, over a three-year period, sales increased by 30%, and cost of goods sold increased by 45%,
A) the sales trend is unfavourable, but the cost of goods sold trend is favourable.
B) the sales trend is favourable, but the cost of goods sold trend is unfavourable.
C) both trends are favourable.
D) both trends are unfavourable.

Question

Quizplus · Accepted Answer

The sales trend is favourable because an increase in sales is generally positive for a business. However, the cost of goods sold trend is unfavourable because it increased at a higher rate than sales, which could negatively impact profit margins.

If, Over a Three-Year Period, Sales Increased by 30%, and Cost