Question

QUESTION 8 of 10:

a) Profit
b) Cost
c) Markdown
d) Margin
is the amount of money the store pays to purchase the merchandise from a supplier.

Answer 1

b) Cost

The amount of money the store pays to purchase the merchandise from a supplier is referred to as the cost. It represents the expense incurred by the store in acquiring the goods that will be sold to customers. The cost of merchandise is an essential component in determining profitability and calculating other financial metrics such as gross profit and profit margin.