The lower the value assigned to ending inventory,the lower the gross margin.

Name: The lower the value assigned to ending inventory,the lower the gross margin.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Gross margin is calculated by subtracting the cost of goods sold from the total revenue. Ending inventory is a component of the cost of goods sold calculation. If a lower value is assigned to ending inventory, then the cost of goods sold will be higher, which will result in a lower gross margin.

The Lower the Value Assigned to Ending Inventory,the Lower the Gross