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

Quizplus · Accepted Answer

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