Newbury Office Supply reported the following gross profit percentages
2014: 37.5%; 2015: 36.2%; 2016: 20.8%. The industry average is 35%. What are some possible reasons for the decline in 2016?
What will be an ideal response
Possible reasons include: There could be errors in recording net sales or cost of goods sold. Employees could have lowered the selling prices to meet sales quotas or earn higher commissions. There could be inventory thefts by employees or customers. There may have been price increases on purchases of merchandise inventory that may not have been reflected in sales prices. The area in which Newbury does business may have suffered declines that are not reflected in the industry averages.
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Procedural justice concerns the compensation that a customer receives as a result of the losses and inconveniences incurred because of a service failure
Indicate whether the statement is true or false