Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

Flo and Mo trade in goods that are alike and are sold at comparable prices. They supplied the information below. - Gross margin: Flo $50\%$, Mo $40\%$ - Profit margin: Flo $10\%$, Mo $8\%$ Which trader demonstrates better control of cost of sales and expenses?

  • ACosts of sales: Flo; Expenses: Flo
  • BCosts of sales: Flo; Expenses: Mo
  • CCosts of sales: Mo; Expenses: Flo
  • DCosts of sales: Mo; Expenses: Mo

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