In conformity with the matching process, the total cost of sales during the period must be related to the sales revenue earned during the period.

Question

Quizplus · Accepted Answer

This statement is true as per the matching principle in accounting, which requires that expenses be matched with the revenues they helped to generate. Therefore, the cost of sales for a given period must be related to the sales revenue earned during that same period.

In Conformity with the Matching Process, the Total Cost of Sales