Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?
A) Direct labor
B) Cost of goods manufactured
C) Direct materials
D) Operating expenses

Question

Quizplus · Accepted Answer

Operating expenses appear on the income statements of both merchandisers and manufacturers. These expenses are incurred in the day-to-day operations of a business, regardless of its industry, and include costs such as rent, utilities, and salaries for administrative staff. Direct labor and direct materials are components of the cost of goods manufactured, which is specific to manufacturers. The cost of goods manufactured itself is not directly listed on the income statement; instead, the cost of goods sold (COGS) is reported, which would be calculated differently for merchandisers and manufacturers.

Which of the Following Costs Would Appear on the Income