--%>

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 : Relative and absolute purchasing power

    Explain about the purchasing power parity, both the relative and absolute versions. List the things which results in the deviations from purchasing power parity?

  • Q : Computing the credit rating List some

    List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

  • Q : Essay-People Dependent on technology

    PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h

  • Q : Screening of Elder Abuse What is the

    What is the aim of the research in the screening of elderly abuse at the primary health care level ?

  • Q : Define Intangible assets Intangible

    Intangible assets: It is the asset that is not visible however we can feel them. The main examples of these assets are goodwill, patent and trade marks.

  • Q : Meso and Macro level theories of

    Identify and elucidate three meso- and/or macro-level theories about deviance.

  • Q : Why cash is so important Why cash is so

    Why cash is so important? Illustrate it.

  • Q : What is Liability Management Liability

    Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and u

  • Q : Asset Owned by an entity, something

      Owned by an entity, something that provides benefits and whose cost can be measured. The measure of the value of assets in dollar appears on the

  • Q : Function of budgetary control play in

    Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?