Which of the following would appear as a line item on the income statements of both,a merchandiser and a manufacturer?
A)Direct labor
B)Cost of goods manufactured
C)Direct materials
D)Cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold is a common line item on the income statement for both a merchandiser and a manufacturer, as it represents the cost incurred to produce or purchase the goods sold during the period. While direct labor and direct materials are typically included in the cost of goods sold for a manufacturer, they may not be relevant for a merchandiser that simply purchases and resells goods. Cost of goods manufactured is a line item specific to the income statement of a manufacturer, as it reflects the total cost of the goods produced during the period.

Which of the Following Would Appear as a Line Item