Which of the Following Is Not True Regarding the Components

Multiple Choice

Which of the following is not true regarding the components of the income statement?

A) Cost of goods sold represents the total cost, excluding shipping, of the merchandise sold during the accounting period.
B) Gross profit margin is calculated by dividing gross profit by net sales revenue.
C) Operating expenses include those costs that contribute directly to the manufacture and distribution of goods.
D) A and B above