--%>

Causes of decreasing of Gross profit margin

What are the various causes of decreasing of Gross profit margin?

E

Expert

Verified

Causes of decreasing of Gross profit margin:
There are several reasons of decreasing gross profit margin of any company. Some of them, are illustrated below:

A) Raise the cost of raw material.
B) High labor turnover ratio.
C) Adverse worker’s compensation trouble.
D) Raise the rate of direct expenditures.
E) Reducing the sale prices due to tough competition.
F) Reducing the quantity of sale.

   Related Questions in Financial Accounting

  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

  • Q : What are Bad Debts What are Bad Debts

    What are Bad Debts and what are their influence on the value of debtor?

  • Q : Cross-hedging and its effectiveness

    Discuss cross-hedging and also some of the factors evaluating its effectiveness.

  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

  • Q : Canadian Outdooring Explain Canadian

    Explain Canadian Outdooring in brief ?

  • Q : Japanese investments in the Southeast

    Japanese MNCs, like Toshiba, Toyota, Matsushita, and so on, made extensive investments within the Southeast Asian countries such as Malaysia, Thailand, and Indonesia. State your opinion, what forces are making Japanese investments within the region?

  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

  • Q : Explain the term Fixed Assets Explain

    Explain the term Fixed Assets and what are their advantages in production or business aims?

  • Q : Stigmatizing obesity Should obesity be

    Should obesity be stigmatized? Answer yes or no, summarize the discussion and explain your position.

  • Q : Describe Short Holding Period Describe

    Describe Short Holding Period briefly with suitable example?