Because of Markdowns,discounts to Employees and Customers,and Merchandise Reductions,______________

question 63

Multiple Choice

Because of markdowns,discounts to employees and customers,and merchandise reductions,______________.

• A)the initial markup is usually higher than the maintained margin
• B)the maintained markup is always less than the gross margin
• C)there will be a shortage
• D)the value of average inventory at cost is less than its receipt value
• E)the initial markup is always lower than the maintained markup

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Definitions:

Formulas

Predefined mathematical equations used to calculate values based on input data, widely used in disciplines such as finance, physics, and chemistry.

Royalty

Money that employees or others receive based on sales, for example an author or musician.

Percentage

A mathematical concept that represents a portion of 100, used in describing proportions and rates in various contexts.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.