Costs on the income statement for both a merchandiser and a manufacturer would be
A) operating expenses
B) direct materials
C) direct labor incurred
D) cost of goods manufactured

Question

Quizplus · Accepted Answer

Both merchandisers and manufacturers have operating expenses, which are costs incurred in order to operate a business but are not directly related to the production of goods. Examples of operating expenses include rent, utilities, insurance, and marketing expenses. Direct materials, direct labor, and cost of goods manufactured are all specific to the production process and are not applicable to merchandisers.

Costs on the Income Statement for Both a Merchandiser and a Manufacturer