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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Definitions:

Homoplasy

The occurrence of similar traits in species due to convergent evolution or parallel evolution, not shared ancestry.

Illustrates

Shows or provides examples to clarify or make something visible or understandable, often used in the context of explaining concepts with diagrams or images.

Whale Intermediates

Transitional fossil forms that provide evidence for the evolutionary lineage of whales from land-dwelling mammals.

Four-Legged

Pertaining to organisms, primarily terrestrial vertebrates, that have four limbs, a characteristic feature of tetrapods including mammals, reptiles, and amphibians.