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Company A's gross profit percentage has fallen from 70% to 61 % Which of the...

Company A's gross profit percentage has fallen from 70% to 61 % Which of the following possible explanations would most concern the internal auditors?

A.

During the year the raw material price increased due to an international shortage of the material

B.

The sales director decided to reduce the selling price to increase the market share

C.

There had been an omission of several items from the inventory records

D.

During the year direct wages had been misclassified as indirect manufacturing expenses

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