Which Income Statement Line Item Had the Largest Percentage Increase

question 123

Multiple Choice

Which income statement line item had the largest percentage increase from the prior year to the current year?

• A)Depreciation Expense
• B)Cost of Goods Sold
• C)Interest Expense
• D)Sales

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Definitions:

Cost-Plus Pricing

A pricing method where the seller establishes the sale price by adding a defined markup to the cost per unit of the product.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary directly with the level of production or sales volume; they increase as production increases and decrease as production decreases.

Mark-Up Percentage

A financial ratio indicating the percentage by which a product's selling price exceeds its cost, used to determine selling prices.

Time And Material Pricing

A pricing method where a service provider charges based on the labor time involved and the cost of materials used.