Which of the following properly explains why operating expenses percentage in Costco (as a warehouse store)is lower than that of Macy's (as a department store)?
A)Costco has higher selling expenses than Macy's.
B)Costco operates with a larger administrative staff than Macy's.
C)Costco spends less on maintaining the ambiance of its stores than Macy's.
D)Costco advertises less than Macy's.

Question

Quizplus · Accepted Answer

Costco has a different strategy than Macy's in that they spend less on maintaining the ambiance of their stores.Macy's advertises more,has higher selling expenses and administrative staff than Costco,thus increasing Macy's operating expense percentages.

Which of the Following Properly Explains Why Operating Expenses Percentage