Question
X Companys cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The companys selling, general, and administrative
X Companys cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The companys selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the companys total COGS and total SG&A costs:
Group of answer choices COGS = increase by 15%; SG&A = increase by 15% COGS = increase by 15%; SG&A = no change not enough information COGS = no change; SG&A = increase by 15% COGS = no change; SG&A = no change
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