On a manufacturer's income statement expenses are separated into the following three categories:
A) production, period, and indirect
B) materials, work in process, and finished goods
C) production, selling, and administrative
D) variable, fixed, and direct

Question

Quizplus · Accepted Answer

The three categories of expenses on a manufacturer's income statement are typically production expenses (related to the production of goods), selling expenses (related to the promotion and sale of goods), and administrative expenses (related to the general management and operation of the company). These categories are commonly referred to as production, selling, and administrative expenses. Option A is incorrect because indirect expenses are typically included in either selling or administrative expenses. Option B is incorrect because materials, work in process, and finished goods are not categories of expenses, but rather categories of inventory. Option D is incorrect because variable, fixed, and direct expenses are types of expenses, but not necessarily the categories of expenses found on a manufacturer's income statement.

On a Manufacturer's Income Statement Expenses Are Separated into the Following