If, Over a Three-Year Period, Sales Increased by 30%, and Cost

question 37

Multiple Choice

If, over a three-year period, sales increased by 30%, and cost of goods sold increased by 45%,

• A)the sales trend is unfavourable, but the cost of goods sold trend is favourable.
• B)the sales trend is favourable, but the cost of goods sold trend is unfavourable.
• C)both trends are favourable.
• D)both trends are unfavourable.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Assembly Line Wages

Wages paid to workers who are involved in the operations of an assembly line, typically in a manufacturing process.

Raw Materials

The basic materials that are processed and converted through manufacturing into finished goods.

Factory Utilities

Costs incurred for utilities in a manufacturing setting, such as electricity, gas, and water, essential for production operations.