All of These Are Cost Elements of an Operating Statement

question 16

Multiple Choice

All of these are cost elements of an operating statement except which?

• A) cost of goods sold
• B) inventory
• C) returns and allowances
• D) direct labor
• E) gross margin

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Definitions:

Unrealised Profit

Unrealised profit refers to profits that have been generated on paper through an investment's increased value but have not yet been realized through a sale.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

External Party

An individual or organization that is separate from the entity being referred to and not directly involved in its operations or management.

Legal Entities

Organizations, companies, or individuals that have legal rights and obligations, allowing them to enter into contracts, sue, and be sued.