Historically, in the rural retail grocery industry, cost of goods sold averages 75% of sales. If next year's sales are expected to be $1,600,000, the cost of goods sold forecast would be $1,200,000.

Question

Quizplus · Accepted Answer

Since the historically observed cost of goods sold is 75% of sales, we can calculate the cost of goods sold forecast by multiplying next year's expected sales by 0.75:

$1,600,000 x 0.75 = $1,200,000

Therefore, the answer is A: True.

Historically, in the Rural Retail Grocery Industry, Cost of Goods