Accounting for IGCSE & O level - Final Statements (Section 10 - No. 45)
What is the impact of increasing the 'cost of goods sold' on the gross profit?
Increases gross profit
Decreases gross profit
Has no impact on gross profit
It can increase or decrease gross profit
Explanation
Gross Profit = Sales Revenue - Cost of Goods Sold. An increase in the COGS decreases the gross profit.