Table 18-6 Arlington Company Prepared a Common-Size Income Statement, for 2017, to 2017

question 186

True/False

Table 18-6
Arlington Company prepared a common-size income statement, for 2017, to compare its results with its key competitor, Bardo Company. Please refer to the following data:

-Refer to Table 18-6.Based on this data,an analyst could conclude that Arlington's total gross margin,in dollars,is higher than Bardo's.

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Definitions:

General Cost

A type of expense that is not directly tied to production or operations but is necessary for overall business function, like utilities or rent.

Prime Costs

The combined costs of direct materials and direct labor that are directly attributable to the manufacturing process.

Direct Materials

Materials that are directly consumed in the production of a product and are easily traceable to it.

Cost of Goods Sold

The immediate expenses related to the creation of products sold by a business, which include costs for materials and labor.