Regarding Retailing,which of the Following Statements Is FALSE

question 274

Multiple Choice

Regarding retailing,which of the following statements is FALSE?

• A)Supermarkets average about $20 million in sales per year.
• B)Single-line mass-merchandisers have not been successful-probably because their assortments are so limited.
• C)Mass-merchandisers put less emphasis on knowledgeable salespeople than more conventional retailers.
• D)Discount houses got their start selling "hard goods" at lower prices.
• E)The average mass-merchandiser has nearly 60,000 square feet of floor space.

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Definitions:

Gross Profit Rate

Is the ratio of gross profit to net sales, expressing the efficiency with which a company utilizes its resources to make a profit.

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a firm, encompassing materials, workforce, and indirect costs.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is taken at specified intervals.

Purchase Account

An account used in accounting to record the total purchases of goods and services by a company.