How Should Companies with More Than One Revenue Source Report

question 46

Multiple Choice

How should companies with more than one revenue source report revenue and cost of goods sold?

• A)Each revenue source should be reported separately, but all cost of goods sold should be added together and reported as a single amount.
• B)The revenues and cost of goods sold should be netted together and reported as a single line item.
• C)All revenue sources should be added together and shown as one line item and all cost of goods sold should be added together and shown as one line item.
• D)Each revenue line should be shown separately with a corresponding cost of goods sold line for each revenue source.

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Definitions:

Strategic Objectives

Specific, measurable goals that an organization aims to achieve as part of its larger strategy.

Core Processes

The essential activities and procedures that are central to an organization's function and value creation.

Work Processes

The sequence of steps or activities that are undertaken to achieve organizational goals or produce goods and services.

Coordinated Tasks

Activities that require synchronization and collaboration among various participants to achieve a common goal.