Expenses to Promote Sales by Displaying and Advertising Merchandise,make Sales,and

question 6

Multiple Choice

Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:

• A)General and administrative expenses.
• B)Cost of goods sold.
• C)Selling expenses.
• D)Purchasing expenses.
• E)Non-operating activities.

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Definitions:

Controllable Margin

A measure of profitability that focuses on the income and expenses directly controlled by a manager or business unit, excluding fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales activities over a relevant period.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributed towards covering fixed costs and generating profit.

Performance Reports

Documents that review and assess the performance of individuals, departments, or organizations against planned objectives.