Which of the following costs is most likely to be the largest expense reported on the income statement of a merchandiser such as Wal-Mart stores?
A) Utilities expense.
B) Cost of goods sold.
C)Advertising expense.
D)Income tax expense.

Question

Quizplus · Accepted Answer

The cost of goods sold represents the cost incurred by the merchandiser to purchase the products that are sold to customers. For a large retailer like Wal-Mart, the cost of purchasing goods to sell is likely to be the largest expense reported on the income statement.

Which of the Following Costs Is Most Likely to Be