The income statement for a merchandising company includes:
A)Direct Labor.
B)Factory Overhead.
C)Total Manufacturing Cost.
D)Cost of Goods Sold.
E)None of the above.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is the only option that is included in the income statement for a merchandising company. Direct labor and factory overhead are typically associated with manufacturing companies, while total manufacturing cost is a broader concept that includes all costs associated with manufacturing a product. Therefore, the correct answer is D) Cost of Goods Sold.

The Income Statement for a Merchandising Company Includes