The largest expense on the income statement for most merchandising companies is:

Question

Quizplus · Accepted Answer

The cost of goods sold is the largest expense on the income statement for most merchandising companies because it represents the cost of the merchandise sold during the period. Administrative and selling expenses are important, but they are typically smaller than the cost of goods sold. Other expenses may vary in importance depending on the company, but they are not typically as significant as the cost of goods sold.

The Largest Expense on the Income Statement for Most Merchandising