How does the recording of fulfillment costs cause a quality of financial reporting issue?

(a) Many companies record fulfillment costs as operating expenses when they should be recorded as miscellaneous expenses.

(b) Bad debt expenses are recorded is fulfillment costs.

(c) Fulfillment costs can include items that are properly classified as cost of goods sold, as well as other operating costs, therefore causing a comparability issue when comparing firms' gross profit and operating profit murgim

(d) Fulfilment costs cause the operating profit margin to be wrong, & If a firm has written down the value of their inventory, what should be of concers to the analyst

(a) The analyst should consider removing the effects of the write-down from the profit margins in order to better compare changes from one period to the next

(b) The analyst should deduct the loss from the write-down from the net earnings amount.

(c) The analyst does not need to do anything since write-downs of inves tory are so frequent.

(d) The analyst cannot determine the effect of the write down and, therefore, is unable to make any adjustments. Which of the following expenses is (are) usually considered to be discretionary?

(a) Research and development.

(b) Advertising

(c) Depreciation

(d) Both

(a) and (b).