Accounting Multiple Choice Question – 27 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The gross profit margin earned on an item that cost £500 and is sold for £625 is?

Select ONE answer:

  1. 20%
  2. 25% 
  3. 33 1/3%
  4. None of the above.

 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – Gross Profit Margin = Gross Profit as a percentage of selling price = (£625 — £500) / £625 = 20%.
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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