The income statement for a merchandising company includes:
A)Direct Labor.
B)Factory Overhead.
C)Total Manufacturing Cost.
D)Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Cost of Goods Sold is a key component of the income statement for a merchandising company as it represents the direct cost of the goods that were sold during the accounting period. Direct Labor and Factory Overhead are components of the income statement for a manufacturing company that produces goods, and Total Manufacturing Cost reflects the total cost of producing goods during the accounting period.

The Income Statement for a Merchandising Company Includes