Which of the following statements is false?
A)Gross profit percentage is calculated as gross profit divided by net sales.
B)Gross profit percentage should only be viewed for each reporting company and is not useful in comparing different companies in the same industry.
C)Gross profit is calculated as net sales less cost of sales.
D)A higher gross profit might be strategic in order to afford high research and development costs.

Question

Quizplus · Accepted Answer

Gross profit percentage is a useful metric for comparing companies within the same industry, as it indicates how efficiently a company is producing and selling its products. It is calculated as gross profit divided by net sales. A higher gross profit can indicate a company's ability to invest in research and development or other strategic initiatives.

Which of the Following Statements Is False