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.

---

Definitions:

Chronic Diseases

Long-lasting conditions that can be controlled but not always cured, affecting an individual's quality of life.

Infectious Diseases

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi, that can be spread directly or indirectly from one person to another.

Genetic Influences

The impact of genes inherited from parents on an individual's characteristics, behaviors, and predispositions to certain conditions or traits.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, important for maintaining physical fitness and health.