Which of the Following Is NOT an Item That Must

question 11

Multiple Choice

Which of the following is NOT an item that must be considered when planning an initial markup?

• A) Customer returns and allowances
• B) Stock shortages
• C) Planned gross margin
• D) Cash discounts to customers
• E) Employee discounts

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Definitions:

Issue Negotiable Instruments

The act of creating financial documents, such as checks or promissory notes, that are transferable from one party to another in exchange for value.

Borrow Money

The act of obtaining funds from another party (such as a bank or individual) under the agreement to repay the principal amount along with interest or other charges.

Ordinary Course Of Business

Activities and operations that are considered normal, routine, and in the usual scope of a company's business practices.

Limited Liability Partnership

A partnership arrangement that limits the liability of its partners for the debts of the partnership, such that no partner is responsible for the misconduct or negligence of another.