• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams
Get your discount code >>

ACCA June '23 Exams

Instant Poll
Read & post comments >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers >>

Gross profit margin (comparison)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Gross profit margin (comparison)

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 14, 2023 at 9:19 pm #681316
    menpagalhoon
    Participant
    • Topics: 17
    • Replies: 8
    • ☆

    Question

    A company’s gross profit percentage on sales has decreased by 5% in 2002 compared with 2001.

    Which one of the following could be the reason behind this decrease?

    Correct option:

    Inventory at the end of 2002 is lower than at the end of 2001.

    I kind of get this but I and not sure if my thinking process is correct. I just thought that closing inventory was reduced so cost of sales went up. And the Gross profit decreased.

    Is this the correct train of thought? Are there other ways of looking at this?

    March 15, 2023 at 9:36 am #681350
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 52529
    • ☆☆☆☆☆

    That is the correct train of thought and is the only way of looking at it.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

Changes to the SBL exam from September 2023

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

 

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • kish200 on The cost of capital – The cost of equity – ACCA Financial Management (FM)
  • anusha1995 on PM Chapter 12 Questions Quantitative analysis in budgeting
  • John Moffat on Financial management objectives – ACCA Financial Management (FM)
  • John Moffat on FM Chapter 15 Questions Test 2 – The valuation of securities – theoretical approach
  • John Moffat on FM Chapter 4 Questions – Management of working capital (2) – Inventory

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy