If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?

Question

Quizplus · Accepted Answer

Improperly recording sales staff salaries as a product cost will result in overstating the cost of goods sold, which in turn will lead to a decrease in gross profit and an overstatement of net income.

If the Salaries of the Sales Staff of a Manufacturing