**Question:**The price a business pays for goods it purchases to sell is called:A. markupB. purchase priceC. cost of merchandise**Explanation:** The correct answer is highlighted as C. cost of merchandise. This refers to the actual amount spent by a business to acquire goods intended for resale. The markup is the added amount to cover expenses and profit, and the purchase price is another term for the cost at which goods are bought.

Any item that is displayed for sale and intended to be sold to customers in exchange for a profit is…

Answered: The price a business pays for goods it…

Business

Accounting

The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C. cost of merchandise

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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