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Which of the following would cause a retail store’s gross profit percentage to increase?

A- Sales volume has increased. B- Some items that were shipped on the first day of the following period were booked as sales for the current period. C- The closing inventory is overstated. D- Sales commissions as a percentage of sales have been decreased.

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Question added by Ahmed Dawoud , Senior Accountant , HI PROF General Trading & Contracting
Date Posted: 2016/02/14
Kirti Agarwal
by Kirti Agarwal , Senior Analyst , Crisil Ltd

Answer D since Sales commission has reduced a percentage of sales.

Sanket Sarode
by Sanket Sarode , Deputy Manager / Asst. Buyer - Retail , Reliance Retail Ltd

Answer is option D - Sales commissions i.e., outflow as a percentage of sales have been decreased

FAISAL SHAMIM
by FAISAL SHAMIM , Store Manager , MIRZA INTERNATIONAL LTD

B. items shipped on the first day and booked for ship.

Muhammad Mudassar Khan
by Muhammad Mudassar Khan , Deputy Manager Merchandising , Sach International Pvt Limited

A- Sales volume has increased

Tarek Farghal
by Tarek Farghal , Account executive , AWI

B- Some items that were shipped on the first day of the following period were booked as sales for the current period

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