Expenses in the income statement may

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Expenses in the income statement are typically classified on the basis of their function, such as cost of goods sold, marketing expenses, and general administrative expenses. This allows for a clearer understanding of how expenses relate to the overall operation of the business. Classifying expenses by currency or geographic location may be relevant in certain situations, but is not a common practice for income statements. Classifying by materiality is also not common, as all expenses should be included in the income statement regardless of their size or significance.

Expenses in the Income Statement May