Which of the following costs would appear on the income statements for both a retailer and a manufacturer?
A) Electricity and gas
B) Direct labour
C) Cost of goods manufactured
D) Direct materials

Question

Quizplus · Accepted Answer

Electricity and gas costs will appear on the income statements of both a retailer and a manufacturer as they are necessary expenses for operating a business.

Answer: D) Direct materials
 Direct materials costs will appear on the income statements of both a retailer and a manufacturer, but it will be called "cost of goods sold" for the retailer and "cost of goods manufactured" for the manufacturer.

Which of the Following Costs Would Appear on the Income