A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2016 · Q201 Mark

The following ratios have been calculated for two businesses, both with the same revenue of $100000. X Y gross margin 20% 25% profit margin 10% 10% How do the cost of sales and expenses of X compare with those of Y? cost of sales expenses A higher higher B higher lower C lower higher D lower lower

Ahigher higher

Bhigher lower

Clower higher

Dlower lower

✓ Correct answer

B: higher lower

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 20.

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The following ratios have been calculated for two businesses, both with the same revenue of $100000. X Y gross margin 20% 25% profit margin 10% 10% How do the cost of sales and expenses of X compare with those of Y? cost of sales expenses A higher higher B higher lower C lower higher D lower lower

✓ Correct answer

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