Selected information for Alastair Company is as follows:

-Refer to Exhibit 14-3. What is the percentage that would be given to cost of goods sold on a common-size income statement (round to the nearest percent)?

Question

Selected information for Alastair Company is as follows:
 
-Refer to Exhibit 14-3. What is the percentage that would be given to cost of goods sold on a common-size income statement (round to the nearest percent)?

Quizplus · Accepted Answer

In a common-size income statement, each line item is expressed as a percentage of sales. Cost of goods sold (COGS) is typically a significant portion of sales, and 77 percent is a reasonable estimate for COGS in many industries.

Selected Information for Alastair Company Is as Follows