In the Context of Computing the Cost of Sales, the Common

question 49

Multiple Choice

In the context of computing the cost of sales, the common way to do this is to use the percent-of-sales method, which is a method for expressing each expense item as a percentage of ________.

• A) net sales
• B) gross profit
• C) net income
• D) operating income
• E) cost of sales

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Y Axis

The vertical line in a graph or chart that typically represents the dependent variable.

Equilibrium Price

The point where the volume of goods being offered equals the volume of goods being sought in terms of price.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific time.