The Following Are the Income Statements of the Franz Company

question 56

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 2012?

• 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:

Material Phenomena

Events or occurrences that are tangible and can be observed or measured in the physical world.

George Ritzer

A renowned sociologist best known for his work on the McDonaldization of society, which critiques consumer culture and the homogenization of everyday life.

Macro-Micro Continuum

The spectrum of analysis in sociology that ranges from large-scale social structures and processes (macro) to individual behaviors and interactions (micro).

Macro Pole

Refers to a large-scale, broad perspective focusing on social structures and processes that shape society as a whole.