A decline in a company's gross profit could be caused by all of the following except
A)selling products with a lower markup.
B)clearance of discontinued inventory.
C)paying lower prices to its suppliers.
D)increased competition resulting in lower selling prices.

Question

Quizplus · Accepted Answer

Paying lower prices to its suppliers would not cause a decline in a company's gross profit; it would likely increase it, as the cost of goods sold would decrease, improving the gross margin.

A Decline in a Company's Gross Profit Could Be Caused