8.4 The Gross Profit Method of Estimating Inventory What is the reason that gross profit based on selling price will always be less than the related percentage based on cost? Retailers wish to obscure the true cost from customers. Selling price is greater than cost and the gross profit amount is the same for both. Selling price is more volatile than cost because of the greater-of-cost-or-market rule. Companies make more money by increasing the markup on selling price as compared to cost. Save for Later Submit Answer 26%