CIMA F2 Advanced Financial Reporting F2 Question # 31 Topic 4 Discussion

CIMA F2 Advanced Financial Reporting F2 Question # 31 Topic 4 Discussion

F2 Exam Topic 4 Question 31 Discussion:
Question #: 31
Topic #: 4

Which of the following statements is true in respect of ST's gross profit margin based on the information given?


A.

Gross profit margin has increased as a result of management negotiating a premium price for the contract with the new customer.


B.

Economies of scale have been achieved from increased revenues resulting in a reduction in the gross profit margin.


C.

The associate's gross profit margin is greater than ST's leading to an overall increase in ST's margin.


D.

Gross profit margin has reduced due to the increased cost of the new contract.


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