When preparing a traditional income statement,it is necessary to break down costs into what two categories?

Question

Quizplus · Accepted Answer

When preparing a traditional income statement, costs must be categorized into product costs and period costs. Product costs are related to the production of goods, including direct materials, direct labor, and manufacturing overhead. Period costs are not related to the production of goods and include selling, general, and administrative expenses.

When Preparing a Traditional Income Statement,it Is Necessary to Break