Which of the following fluctuations will result in a lower gross margin? (Select TWO options)

The correct answer is B. Increased cost of goods sold D. Decreased revenue. Gross margin = (Revenue - Cost of Goods Sold) ÷ Revenue Higher COGS and lower revenue both reduce the margin. Operating expenses and liabilities impact net profit, not gross margin directly. SPHR financial literacy requires knowledge of "how operational changes affect key…

Business Management & Strategy

Question

Options

AIncreased gross profit
BIncreased cost of goods sold
CDecreased operating expenses
DDecreased revenue
EDecreased liabilities

How the community answered

(51 responses)

A
18% (9)
B
73% (37)
C
4% (2)
E
6% (3)

Explanation

Gross margin = (Revenue - Cost of Goods Sold) ÷ Revenue Higher COGS and lower revenue both reduce the margin. Operating expenses and liabilities impact net profit, not gross margin directly. SPHR financial literacy requires knowledge of "how operational changes affect key financial ratios used in strategic planning and compensation modeling".

Topics

#gross margin#financial metrics#cost of goods sold#revenue impact

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