Which of the Following Accounts Is Used ONLY at the Close

question 66

Multiple Choice

Which of the following accounts is used ONLY at the close of the merchandising cycle?

• A) Net sales revenue
• B) Income summary
• C) Cost of goods sold
• D) Sales revenue

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Definitions:

Total Cost

The complete amount of money spent on the production of goods or services, including all variable and fixed costs.

Break-even Point

The point at which total costs equal total revenue, with no profit or loss, indicating the minimum sales volume needed to cover all expenses.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one additional unit of a product, excluding fixed costs.