For Income Statement Purposes, Depreciation Is a Variable Expense If

question 79

Multiple Choice

For income statement purposes, depreciation is a variable expense if the depreciation method used is

• A) units-of-production.
• B) straight-line.
• C) sum-of-the-years'-digits.
• D) declining-balance.

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Definitions:

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold, excluding other expenses and overhead.

Merchandise Sold

Goods that have been sold by a company, generating revenue; part of the sales process in a retail or wholesale environment.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of raw materials and labor.

Credit Terms

Agreed upon conditions under which a buyer can pay at a later time for goods or services received, typically specifying the time period and any discount for early payment.