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Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for such behavior could be:

<p><strong>(a) Increase in Costs of Goods Sold, </strong></p> <p><strong>(b)If Increase in Expense,</strong></p> <p><strong>(c) Increase in Dividend,</strong></p> <p><strong>(d)Decrease in Sales.</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/20
Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

B

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

B)INCREASE IN EXPENSE

Subash Thomas
by Subash Thomas , Manager- Internal Audit. , Confidential Company

If the sales remain constant, option B, increase in expenses is correct. If expenses remain constant, then option D is correct.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER B  

Md. Shahrier Aswad
by Md. Shahrier Aswad , Accounts Officer, Finance & Accounts Department , Center for the Rehabilitaion of the Paralysed (CRP)

Answer should be B, if Sales is constant.

MOHAMMAD EBRAHIM Hossain
by MOHAMMAD EBRAHIM Hossain , Lecturer , Shahid Mashiur Rahman Degree college, Jhikargacha Jessore

B is correct answer

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

 The answerd Decrease in Sales 

Anayatullah Tahir
by Anayatullah Tahir , Finance Manager , Etqan Projects

Option B is correct.

b) If  Increase  in  Expense,

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