An example where accountants normally decide that a cause and effect relationship exist between revenue and expenses is:
A)Sales revenue and sales commissions
B)Sales revenue and cost of sales
C)Sales and sales manager's salary
D)All of the above

Question

Quizplus · Accepted Answer

All of the options provided (A, B, C) represent situations where accountants typically recognize a cause and effect relationship between the revenue generated and the associated expenses. Sales revenue directly influences sales commissions (A), cost of sales (B), and can also be linked to the sales manager's salary (C), especially if their compensation is performance-based.

An Example Where Accountants Normally Decide That a Cause and Effect