The Following Are the Income Statements of the Franz Company

question 83

Multiple Choice

The following are the income statements of the Franz Company for two consecutive years. Which expense(s) increased substantially as a percentage of sales and thus contributed to the net loss in 2014?

• A) administrative expenses
• B) selling expenses and administrative expenses
• C) cost of goods sold
• D) cost of goods sold and selling expenses

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Definitions:

Genetic Factors

Genetic factors involve the hereditary elements inherited from one's parents that influence various traits and likelihood of developing certain diseases or conditions.

Adoption Studies

Research investigations that compare similarities between adopted children and their adoptive and biological parents to understand genetic and environmental influences.

Biological Parents

The parents who contribute their genetic material to the birth of a child, differing from adoptive or step-parents.

Understaffed Orphanages

Understaffed orphanages refer to child care institutions that do not have enough staff members to adequately care for the needs of all the children.