A company's gross sales may be reduced by
A) the size of the contribution margin.
B) the percentage of markdowns.
C) depreciation and amortization.
D) stock turn rate and the markup percentage.
E) returns or allowances.

Question

Quizplus · Accepted Answer

Returns or allowances reduce the gross sales as they represent the amount of sales that are returned by customers or allowances given for defective goods.

A Company's Gross Sales May Be Reduced by