A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2010 · Q201 Mark
A company buys and re-sells goods. It has a higher gross profit margin than its rivals. Which reason could explain this?
ARival companies pay less for goods than the company.
BRival companies spend less on advertising than the company.
CThe Company charges a higher selling price than its rivals.
DThe Company charges a lower price than its rivals.
✓ Correct answer
C: The Company charges a higher selling price than its rivals.
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