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.

---

Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its transactions.

Exchange Rates

The rate at which one currency can be exchanged for another, often influenced by economic factors and market conditions.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.