Use the information below to answer the following question(s).Toronto Industries Inc.had the following activities during the year:

-Manufacturing-sector companies
A)purchase materials and convert them to finished goods.
B)buy goods and resell them.
C)provide services or intangible products.
D)have only period costs.
E)have one classification of inventory.

Question

Use the information below to answer the following question(s).Toronto Industries Inc.had the following activities during the year:
 
-Manufacturing-sector companies
A)purchase materials and convert them to finished goods. 
B)buy goods and resell them. 
C)provide services or intangible products. 
D)have only period costs. 
E)have one classification of inventory.

Quizplus · Accepted Answer

Manufacturing-sector companies purchase materials and convert them to finished goods, which results in the creation of inventory. This is different from companies in the retail or service sectors, which buy and sell goods or provide services. Manufacturing companies also have both period and product costs and need to keep track of multiple classes of inventory.

Use the Information Below to Answer the Following Question(s)