In Analyzing the Income Statement of Bob Company, Cost of Goods

question 25

Multiple Choice

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to the nearest cent in 2013 was:

• A)$20,697.17
• B)$20,679.71
• C)$20,769.71
• D)$20,796.71
• E)None of these

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Definitions:

Business Products

Goods or services sold to other businesses for resale, use in production, or services in operations.

Convenience Products

Items that consumers purchase frequently, immediately, and with minimal comparison and buying effort, such as household goods or snacks.

Convenience Products

These are items that consumers purchase frequently, immediately, and with minimal comparison and buying effort, like bread or soft drinks.

Competing Products

Goods or services that are offered in the same market and serve similar functions, thereby competing for the same customer base.