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d. In capital intensive industries sales volume changes result in a stable gross profit margin. 6. Extra ordinary incomes or expenses include which of the following income statement items? a. Salaries, insurance, interest. b. Salaries, rent, advertising. c. Gain or loss on sale of assets. d. Advertising, research & development, amortization. 7. What is depreciation? a. The process used to allocate the cost of natural resources. b. The process used to allocate the cost of tangible fixed assets c. The process used to allocate the cost of capital leases, leasehold improvements and intangible assets. d. The process used to allocate the cost of oil, gas, minerals and standing timber. 8. Which item would not be classified as an operating expense? a. Research & development expense. b. Rent expense. c. Depreciation d. Loss on sale of assets. 9. Which of the items below would be included under "Other income and expense"? a. Salaries, interest expense, equity losses b. Gains from sale of assets, interest income. c. Research and development, dividend income, interest expense. d. Advertising, cost of goods sold, selling and administrative expenses. 10. Which item is an a special item that must be disclosed separately on the income statement? a. Extraordinary gain b. Extraordinary loss c. Discontinued operations d. All of the above