IIA
IIA-CIA-PART3 · Question #259
IIA-CIA-PART3 Question #259: Real Exam Question with Answer & Explanation
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Question
An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two. Which of the following could be the reason for the decline in the net profit margin for year two?
Options
- ACost of sales increased relative to sales.
- BTotal sales increased relative to expenses.
- CThe organization had a higher dividend payout rate in year two.
- DThe government increased the corporate tax rate
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