Margo, Inc

Multiple Choice

Margo, Inc. purchased goods from Fairlane Industries. If Margo's accounts show a Purchase Discount account related to this purchase, which of the following is true?

A) Margo considers purchase discounts lost as a financial expense.
B) Margo uses the gross method and a periodic inventory system.
C) Margo's management can measure inefficiency by holding management responsible for discounts not taken.
D) All of these are correct regarding Margo, Inc.