[killaking]

why wont an increase in COGS as a percentage of sales increase this?

why is the answer recording items on consignment during the last month as sales?

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[jimboace88]

They like to be tricky with who has ownership of the goods. If the goods are out on consignment at somewhere else but you are the consignor (the one that is putting them out on consignment), then the proper treatment is to record the sales arising from the portion of items out on consignment that were sold.

If the goods are out on consignment and you are the consignee, then it's wrong to record the items sold as sales on the consignee's books. Not sure why that would happen…

Double-check the wording of the question (Becker gets me with these kinds of things a lot)…otherwise I'm not sure what the problem is.

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[killaking]

why wont it be the COGS as a percentage of sales?

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[killaking]

is this because the ratio wont change it will stay constant? because both inventory and COGS are going up?

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[killaking]

I get it now an increase in both will cause a decrease and a decrease in both will cause an increase.

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[killaking]

and over on the top half and under on the bottom half will cause an increase and a decrease in the opposite.

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[Author]

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