In a Traditional Format Income Statement for a Merchandising Company

question 125

True/False

In a traditional format income statement for a merchandising company, cost of goods sold is a variable cost that is included in the "Variable expenses" portion of the income statement.

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Definitions:

Repudiate

To refuse to accept or be associated with; in legal terms, it often refers to rejecting the validity of a contract or agreement.

Non-Necessary

Non-necessary refers to something that is not essential or required for a particular purpose or function.

Legality

Pertains to the conformity of an action, agreement, or object with the laws and regulations of a jurisdiction.

Public Policy

Principles and standards considered by the government to be of benefit to the community.