--%>
Assignment Help - homework help

Causes of decreasing of Gross profit margin

What are the various causes of decreasing of Gross profit margin?

E

Expert

Verified

Causes of decreasing of Gross profit margin:
There are several reasons of decreasing gross profit margin of any company. Some of them, are illustrated below:

A) Raise the cost of raw material.
B) High labor turnover ratio.
C) Adverse worker’s compensation trouble.
D) Raise the rate of direct expenditures.
E) Reducing the sale prices due to tough competition.
F) Reducing the quantity of sale.

   Related Questions in Financial Accounting

  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

    		•
  • Q : Characteristics of Zero coupon bonds

    State the characteristics of the Zero coupon bonds market instrument.

    		•
  • Q : Foreign subsidiary- financial structure

    State some of the conditions under which the foreign subsidiary’s financial structure become relevant?

    		•
  • Q : Cost accountant With Black

    Black Manufacturing Company Black Manufacturing produced a single product called the Great Beast. During the past three weeks, Lee High, the new cost accountant, had observed that production efficiency and input pr

    		•
  • Q : Techniques of valuation of goodwill

    Techniques of valuation of goodwill: A) Average profit technique B) Super profit technique C) Capitalization technique

    		•
  • Q : Trend of Gross profit of Company

    Describe the trend of Gross profit of Company?

    		•
  • Q : Maximum factors Explain the Maximum

    Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?

    		•
  • Q : Computing opportunity cost of producing

    Country C is able to generate seven pounds of food or four yards of textiles per unit of input. Calculate the opportunity cost of producing food rather than textiles.  Also, compute the opportunity cost of producing textiles rather than food.

    		•
  • Q : Ppe Question 3 The following

    Question 3 The following information is taken from the financi al statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had

    		•
  • Q : Trading A CD/$ bank trader is presently

    A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441.  Specify what all is implied about trader’s beliefs by his prices?

    		•