Assuming proper accounting disclosure is used, a large extraordinary loss has what effect on the cost of goods sold?
A)It raises it.
B)It lowers it.
C)It has no effect.
D)More information is needed to determine the effect.

Question

Quizplus · Accepted Answer

Extraordinary losses are reported separately from regular business operations and do not affect the cost of goods sold, which is related to the production and sale of goods.

Assuming Proper Accounting Disclosure Is Used, a Large Extraordinary Loss