Explanation

Fahmeeda Mirza served as the 18th and only women Speaker of the National Assembly of Pakistan from March 2008 to June 2013.

Explanation

COGS would be higher when Using LIFO in a period of rising prices.

As the most recent and expensive purchases are sold first.

This results in a higher cost of goods sold, reducing gross profit and net income.

Explanation

COGS directly impacts the gross margin ratio: higher COGS lowers the ratio, while lower COGS increases it.

Gross margin ratio = (revenue - COGS) / revenue, with higher ratios indicating greater profitability.

Explanation

Factory manager's salary is manufacturing overhead.

An indirect cost not directly related to producing a specific unit.

Including salaries of supervisors, quality control, and support staff.

Explanation

A company can reduce its COGS by reducing direct material costs.

Such as negotiating better prices with suppliers, improving manufacturing efficiency, or finding alternative materials.

Explanation

A high COGS means that a company is spending a significant amount on producing or purchasing the goods they sell, which leaves less room for profit.

This can be a sign that the company's pricing strategy is not optimal.

They may need to consider price increases or cost reductions to maintain profitability.

Explanation

Direct labor is a cost associated with the production process.

It is typically included in the COGS of a manufacturing company.

However, a retail company does not produce goods, so direct labor is not a cost they incur.

Explanation

COGS (Cost of Goods Sold) directly affects profitability by reducing revenue and influencing gross profit margin.

A lower COGS indicates higher profitability, while a higher COGS reduces profitability.

This making it a key metric for evaluating a company's financial health.

Explanation

• Factory rent is an indirect cost, as it is not directly related to the production process.

Direct costs included in COGS are:

• Direct materials
• Direct labor
• Manufacturing supplies

Explanation

The Periodic inventory system requires a physical count of inventory to determine COGS.

As inventory levels are not continuously tracked.

A physical count is necessary to calculate COGS and update inventory records.