The income statement of a manufacturing firm reports:
A)period costs only
B)inventoriable costs only
C)both period and inventoriable costs
D)period and inventoriable costs but at different times; the reporting varies

Question

Quizplus · Accepted Answer

The income statement of a manufacturing firm reports both period and inventoriable costs. Period costs are expenses that are incurred during the period and are not directly related to the production process, such as selling and administrative expenses. Inventoriable costs, on the other hand, are the costs of goods that are either completed and ready for sale or are in the process of being manufactured. Therefore, the income statement will report both types of costs.

The Income Statement of a Manufacturing Firm Reports