The Cost of Goods Sold Is a Variable Cost for a Retailer

question 282

True/False

The cost of goods sold is a variable cost for a retailer, but contains a mixture of variable and fixed production costs for manufacturers.

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Definitions:

Chart of Accounts

An organized list of all the financial accounts in a company's accounting system.

Cash Account

An account that records all transactions involving cash inflows and outflows, including receipts, disbursements, and balances.

Debited

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transfers, by a business from transactions involving goods or services.