The cost of goods sold in a merchandising company typically would be classified as a:
A) fixed cost.
B) variable cost.
C) step-variable cost.
D) mixed cost.

Name: The cost of goods sold in a merchandising company typically would be classified as a: A) fixed cost. B) variable cost. C) step-variable cost. D) mixed cost.
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Question

Quizplus · Accepted Answer

Cost of goods sold is directly related to the level of sales or revenue, making it a variable cost. As sales increase, the cost of goods sold also increases proportionally.

The Cost of Goods Sold in a Merchandising Company Typically