A firm's markdown strategy has the greatest impact on which ratio?
A)collection period
B)current ratio
C)quick ratio
D)overall gross profit

Name: A firm's markdown strategy has the greatest impact on which ratio? A)collection period B)current ratio C)quick ratio D)overall gross profit
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Question

Quizplus · Accepted Answer

Markdowns reduce the selling price of goods, which in turn reduces the gross profit margin. Therefore, a firm's markdown strategy will have the greatest impact on the overall gross profit ratio.

A Firm's Markdown Strategy Has the Greatest Impact on Which