If Costs and Expenses Are Greater Than the Markup, for a Given

question 39

Multiple Choice

If costs and expenses are greater than the markup, for a given period, the difference is called:

• A) net loss
• B) reduced price
• C) markdown
• D) gross margin

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Definitions:

Material Fact

An important fact that, if known, could influence a decision in a contract, transaction, or legal case. It is a fact that matters to the matter at hand.

Rescind

To revoke, cancel, or annul a contract or agreement, typically due to the discovery of errors or fraud.

Innocent Misrepresentation

A false statement made by one party to another without knowledge of its falsity, not intended to deceive, but which leads the other party to enter into a contract or agreement.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.