In doing vertical analysis of an income statement you, Ask an Expert

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In doing vertical analysis of an income statement, you notice that cost of goods sold increased from 50% of sales in year 1 to 60% of sales in year 2. A possible explanation is:

a. Inventory costs rose faster than sales prices.

b. Inventory is being stolen.

c. The accounting records are not accurate.

d. All of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M944366

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