Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company may report high net income through a num

A company may report high net income through a number of means including normal revenues, one-time...

70.2K

Verified Solution

Question

Accounting

A company may report high net income through a number of meansincluding normal revenues, one-time tax benefits, or otheraccounting activities. If a company sales merchandise, it isimportant to understand their operating revenues which will includeincome statement reporting of both Cost of Goods Sold and GrossProfit on Sales.

Class, what is Cost of Goods Sold? Provide examples of the typesof entries recorded to this account. Next, what is Gross Profit onSales? Why is understanding this section of the Classified IncomeStatement so important to managers, investors, and creditors?

Answer & Explanation Solved by verified expert
3.8 Ratings (426 Votes)
Cost of goods sold COGS This is the aggregate amount of expenses which is directly associated with making a product and selling it to the market It includes direct material cost like leather cost for the product of leather jacket direct labor cost like stitching of leather jacket direct expenses etc but should not be included with indirect material cost like hangar for jackets overheads    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Tax implications of business entities: corporations, Scorporations,partnership, and LLCs.List and explain the pros and...Tax...

Accounting
Q

A student is given the task of determining the rate of an enzymatic reaction under defined...

Biology
Q

How ca we define faith? And reason according to Al-ghazali ? Compare with St. Augustine's ideas...

Psychology
Q

a) If you have five capacitors with capacitances 1.1 × 10-6 F, 3.5 × 10-6 F,...

Physics
Q

A motorist drives south at 26.0 m/s for 3.00 min, then turns west and travels at...

Physics
Q

In the voltmeters and the ammeters will be 10 Q V 10 V Circuit 1...

Physics
Q

of kinetic friction between the body and the inclined plane sin 37 3 5 Ans...

Physics
Q

of the 23 The string the spring and the pulley shown in figure 12 E9...

Physics
Q

K Part 2 of 2 Find the mean and standard deviation of the frequency distribution...

Basic Math
Q

The current planned production level and sales forecast are all at the 20,000 -unit level....

Accounting
Q

In the table below, you are given data for the country of Spruce. a. The...

Accounting
Q

Managerial accounting is a veritable tool for organizational decision-making and can be used to solve...

Accounting