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Use the following account numbers and corresponding account titles to answer the following question.
Account No. Account Title
(1) Cash
(2) Merchandise inventory
(3) Cost of goods sold
(4) Transportation-out
(5) Dividends
(6) Common stock
(7) Selling expense
(8) Loss on the sale of land
(9) Sales
Which accounts would affect gross margin?
a. Account numbers 3, 4, 7 and 9
b. Account numbers 3, 7, 8 and 9
c. Account numbers 2 and 9
d. Account numbers 3 and 9

Respuesta :

jepessoa

Answer:

d. Account numbers 3 and 9

Explanation:

gross margin ratio = gross profit / total sales

gross profit = total sales - cost of goods sold

so gross margin ratio = (total sales - cost of goods sold) / total sales

so the accounts that affect gross margin are total sales (9) and cost of goods sold (3)

the gross margin gives us a percentage of what is left after covering COGS and can be used to pay for S&A expenses or result in profit.