Indicate Which One of the Following Would not Appear on Both

question 154

Multiple Choice

Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement.

• A)Gross profit
• B)Operating expenses
• C)Sales revenue
• D)Cost of goods sold

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Definitions:

Cost Behavior

Refers to the way different types of production costs change when there is a change in the level of production.

Special Order

A one-time order not considered part of the company's normal ongoing operations, often requiring special pricing and production considerations.

Variable Costs

Expenses that fluctuate directly with changes in production volume, such as raw materials and direct labor.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.