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)increasing competition resulting in a lower selling price.

Question

Quizplus · Accepted Answer

Paying lower prices to its suppliers would reduce the cost of goods sold, potentially increasing the gross profit, not causing a decline.

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