Cost of Sales Appears on Both a Descriptive Format Income

question 7

True/False

Cost of sales appears on both a descriptive format income statement and a functional format income statement.

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Definitions:

Price Levels

The overall mean cost of the wide spectrum of goods and services in the economy.

Real GDP

Gross Domestic Product adjusted for inflation, representing the value of all goods and services produced over a specific time period at constant prices.

Depreciation

The gradual reduction in the economic value of the physical assets of a company due to wear and tear over time, or the loss in value of a currency.

NDP

Net Domestic Product; it calculates the total value of all goods and services produced within a country in a specific period minus depreciation.