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Business Data Management · End Term · 13 Sept 2026 · May 2026 term · Set 1

Question 11: If a company has a healthy Gross Profit but a low Net Pr…

Question 11

+2 marksOne correct option

If a company has a healthy Gross Profit but a low Net Profit, what does this indicate to management?

  1. A

    Indirect costs like administration or marketing are out of control.

  2. B

    Manufacturing costs are too high.

  3. C

    The selling price is too low to cover variable costs.

  4. D

    There is a favorable variance in direct materials.

Show answer

Correct answer

  • A

    Indirect costs like administration or marketing are out of control.

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Question 11 of 43 in the IIT Madras BS Business Data Management (BDM) End Term paper sat on 13 Sept 2026, in the May 2026 term (Business Data Management 13 Sep 26 (Session 2)). It carries 2 marks.

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