The Following Information Is Provided from EZ Electronics' Annual Report

question 137

Multiple Choice

The following information is provided from EZ Electronics' annual report for the years ended December 31:


-Refer to the EZ Electronics annual report above.Using vertical analysis,2011 cost of goods sold would be represented as ________.

• A)100%
• B)31%
• C)43%
• D)143%

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Definitions:

Monthly Demand

The total quantity of a product or service that consumers are willing and able to purchase in a month.

Selling Price

The amount a buyer pays to purchase a product, determined by cost, market demand, and competition.

Direct Materials

Raw materials that are directly traced and integral to the finished product.

Direct Labour

The labor costs directly associated with the manufacture of specific goods or services.