Which of the following costs is often important in decision making, but is omitted from conventional accounting records? a. Fixed cost. b. Sunk cost. c. Opportunity cost. d. Indirect cost. In a statement of cash flows, a change in the inventories account would be classified as: a. an operating activity. b. a financing activity. c. an investing activity. d. a noncash item that need not appear on the statement of cash flows. An increase in the bonds payable account of $200,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as: a. an addition of $200,000 under investing activities. b. a deduction of $200,000 under investing activities. c. an addition of $200,000 under financing activities. d. a deduction of $200,000 under financing activities Horizontal analysis of financial statements is accomplished through: a. placing statement items on an after-tax basis. b. common-size statements. c. computing both earnings per share and the price-earnings ratio. d. trend percentages. The gross margin percentage is most likely to be used to assess: a. how quickly accounts receivables can be collected. b. how quickly inventories are sold. c. the efficiency of administrative departments. d. the overall profitability of the company's products.