Which of the following would reduce net profit margin but have no effect on gross profit margin? a) Reducing the commission rate paid to salesmen. b) Negotiating a lower purchase price for raw materials. c) An increase in IT support costs for the accounting package used. d) Increasing the expected economic lives of machinery used in the production function.
Which of the following would reduce net profit margin but have no effect on gross profit margin? a) Reducing the commission rate paid to salesmen. b) Negotiating a lower purchase price for raw materials. c) An increase in IT support costs for the accounting package used. d) Increasing the expected economic lives of machinery used in the production function.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 8MC: Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up...
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Which of the following would reduce net profit margin but have no effect on gross profit
margin?
a) Reducing the commission rate paid to salesmen.
b) Negotiating a lower purchase price for raw materials.
c) An increase in IT support costs for the accounting package used.
d) Increasing the expected economic lives of machinery used in the production function.
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