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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for Gross Profit Ratio?
💡 Hint: Remember the components involved in the formula.
Question 2
Easy
Define Gross Profit.
💡 Hint: Think about what expenses are deducted from sales.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the Gross Profit Ratio?
- (Gross Profit / Net Sales) x 100
- (Net Profit / Net Sales) x 100
- (COGS / Net Sales) x 100
💡 Hint: Focus on how gross profit relates to overall sales.
Question 2
True or False: A low Gross Profit Ratio can indicate production inefficiency.
- True
- False
💡 Hint: Consider what a low ratio implies about costs.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company reports Net Sales of ₹1,000,000 and COGS of ₹600,000. Calculate the Gross Profit Ratio and analyze what it indicates about the company.
💡 Hint: Focus on the calculation first, before diving into implications.
Question 2
Given a scenario where a business has rising costs due to increased material prices, how should this affect their pricing model to maintain a healthy Gross Profit Ratio?
💡 Hint: Consider the relationship between sales price and costs—what must be adjusted?
Challenge and get performance evaluation