Hurik Company reports the following $$\begin{array} { | l | r | r | }
\hline & 2006 & 2007 \
\hline \text { Sales } & \$ 300,000 & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 75,000 & \$ 270,000 \
\hline
\end{array}$$ Based upon this information which of the following is most correct:
A) Cost of goods sold is a permanent cost.
B) Cost of goods sold is an economic cost.
C) Cost of goods sold is a totally variable cost.
D) Cost of goods sold is a period expense.

Question

Hurik Company reports the following $$\begin{array} { | l | r | r | } 
\hline & 2006 & 2007 \
\hline \text { Sales } & \$ 300,000 & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 75,000 & \$ 270,000 \
\hline
\end{array}$$ Based upon this information which of the following is most correct:
A) Cost of goods sold is a permanent cost.
B) Cost of goods sold is an economic cost.
C) Cost of goods sold is a totally variable cost.
D) Cost of goods sold is a period expense.

Quizplus · Accepted Answer

The Answer of Hurik Company reports the following $$\begin{array} { | l | r | r | } 
\hline & 2006 & 2007 \
\hline \text { Sales } & \$ 300,000 & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 75,000 & \$ 270,000 \
\hline
\end{array}$$ Based upon this information which of the following is most correct:
A) Cost of goods sold is a permanent cost.
B) Cost of goods sold is an economic cost.
C) Cost of goods sold is a totally variable cost.
D) Cost of goods sold is a period expense.

Hurik Company Reports the Following Based Upon This Information Which of the Following Is Most