Select the Income Statement Account(s) That Would Be Affected by a Policy

question 8

Multiple Choice

Select the income statement account(s) that would be affected by a policy choice at the same time as the inventory balance sheet account.

• A) Bad debts expense
• B) Cost of goods sold expense
• C) Depreciation or amortisation expense
• D) Sales revenue

---

Definitions:

Square Feet

A unit of area measurement equal to a square that measures one foot on each side, commonly used in the United States.

Spending Variance

is the difference between the actual amount spent on materials, labor, or overhead and the budgeted amount for these items.

Fixed Cost

An expense that remains constant, irrespective of the volume of products or services manufactured or traded.

Variable Cost

Costs that vary directly with the level of production or output.