How Does Seasonality Create Fluctuations in a Firm's Net Income

question 68

Multiple Choice

How does seasonality create fluctuations in a firm's net income over a year?

• A)Cost of goods sold will rise and fall along with sales,while administrative and other costs will remain relatively steady.
• B)Cost of goods sold will rise when sales fall,and vice versa,while administrative and other costs will remain relatively steady.
• C)Cost of goods sold,along with administrative and other costs,will rise when sales fall,and vice versa.
• D)Cost of goods sold,along with administrative and other costs,will rise and fall along with sales.
• E)Cost of goods sold,along with administrative and other costs,will remain relatively steady.

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Shareholder

An individual or entity that owns shares in a corporation, making them partial owners and entitling them to dividends and certain rights regarding company governance.

Marketing Information System

A structured system of managing and analyzing marketing data that supports business decision-making related to marketing activities.

Geographic Area

A defined physical space, region, or territory where a business operates or targets its marketing efforts.

Financial Objectives

Specific, measurable goals set by a business or individual to guide financial planning and gauge financial performance.