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Exam IIA-CIA-Part3 topic 2 question 141 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 141
Topic #: 2
[All IIA-CIA-Part3 Questions]

An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two.

Which of the following could be the reason for the decline in the net profit margin for year two?

  • A. Cost of sales increased relative to sales.
  • B. Total sales increased relative to expenses.
  • C. The organization had a higher dividend payout rate in year two.
  • D. The government increased the corporate tax rate.
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Suggested Answer: A 🗳️
by 3f2afe3 at April 2, 2024, 1:33 p.m.

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3f2afe3
4 months ago
Selected Answer: D
This should be D
upvoted 2 times
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