The Formula for a Typical Income Statement Is

question 50

Multiple Choice

The formula for a typical income statement is:

• A) Sales - Cost of goods sold - Selling & administrative expenses = Operating income
• B) Operating income = Gross margin - (Selling & administrative expenses + Cost of goods sold)
• C) Sales - Selling & administrative expenses - Cost of goods sold = Gross margin
• D) Gross margin - Cost of goods sold = Operating income

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Definitions:

Downsizing Strategies

Strategies employed by organizations to reduce the scale and scope of their operations, often to cut costs or realign focus.

Short-term Reaction

An immediate response or adjustment made in response to a specific event or situation, often temporary in nature.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Human Resource Planning

Involves forecasting the organization's future human resource requirements and developing plans to meet those needs.