A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2010 · Q231 Mark
The following information is given about four products. inventory (stock) turnover (per annum), average inventory (stock) in units, mark up on cost % Product A: 8 times, 1000, 15 Product B: 6 times, 1000, 30 Product C: 7 times, 1000, 25 Product D: 10 times, 1000, 20 Which product makes the most gross profit?
AProduct A with inventory turnover 8 times per annum, average inventory 1000 units, mark up on cost 15%
BProduct B with inventory turnover 6 times per annum, average inventory 1000 units, mark up on cost 30%
CProduct C with inventory turnover 7 times per annum, average inventory 1000 units, mark up on cost 25%
DProduct D with inventory turnover 10 times per annum, average inventory 1000 units, mark up on cost 20%
✓ Correct answer
D: Product D with inventory turnover 10 times per annum, average inventory 1000 units, mark up on cost 20%
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and communication of accounting information and see which topics are most likely to come up next.
Sign up free →