If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be _____________?
Correct answer: A. 23.08%
- A. 23.08%
- B. 24.08%
- C. 25.08%
- D. 26.08%
Explanation
Gross margin percentage is calculated as gross margin divided by total revenue: $6,000 ÷ $26,000 × 100 = 23.08%.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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