While a Retailer's Overall Gross Margin Is High,its Net Profit

question 22

True/False

While a retailer's overall gross margin is high,its net profit margin is low.This indicates that the retailer should reevaluate its use of markdowns.

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Definitions:

Computer Chips

Small electronic components made from semiconducting material used in electronic devices to perform computing and processing tasks.

Costing System

A method used by businesses to assign costs to products or services, which helps in pricing and profitability analysis.

Job Order Costing

An accounting method used to track costs and evaluate the profitability of custom jobs by accumulating the costs associated with a specific customer order.

Home Construction

The process of building residential homes, including planning, design, construction, and sale of new homes.