Alex Co. prepared its income statement for management using a standard cost accounting system. Which of the following appears at the "standard" amount?

A) Sales
B) Selling expenses
C) Gross profit
D) Cost of goods sold

Question

Tiffany Rondon · Accepted Answer

Final Answer : D, Explanation :  In a standard cost accounting system, cost of goods sold appears at the standard amount, which represents the predetermined cost of producing a certain quantity of goods. The other items on the income statement (sales, selling expenses, gross profit) may vary based on actual performance and are typically reported at actual amounts.

Alex Co. prepared its income statement for management using a standard cost accounting system. Which of the following appears at the "standard" amount?

A) Sales
B) Selling expenses
C) Gross profit
D) Cost of goods sold

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Learning Objectives

Related questions

Alex Co. prepared its income statement for management using a standard cost accounting system. Which of the following appears at the "standard" amount?A) SalesB) Selling expensesC) Gross profitD) Cost of goods sold

Definitions

Learning Objectives

Learning Objectives

Related questions

Alex Co. prepared its income statement for management using a standard cost accounting system. Which of the following appears at the "standard" amount?

A) Sales
B) Selling expenses
C) Gross profit
D) Cost of goods sold