Which of these expenses normally requires a significant degree of estimation?
A)Wages and salaries
B)Light and power
C)Cost of sales
D)None of the above requires a significant degree of estimation

Question

Quizplus · Accepted Answer

Cost of sales involves the estimation of costs associated with producing and delivering goods or services, which may include materials, labor, overhead, and other expenses. These costs can vary depending on factors such as production volume, supplier prices, and changes in technology. As a result, determining the cost of sales often requires a significant degree of estimation. Wages and salaries may also require estimation if there are variable or performance-based compensation components, while light and power costs can typically be calculated based on usage and rate information. None of the above does not require a significant degree of estimation is not a valid choice.

Which of These Expenses Normally Requires a Significant Degree of Estimation