Would a traditional income statement differ depending on whether the business is a service organization, a...

Would a traditional income statement differ depending on whether the business is a service organization, a merchandiser, or a manufacturer?

Expert Solution

Yes, the traditional statement differ depending upon the business whether it is merchandiser, manufacturer etc.

A manufacturer produces goods from its raw material and other inputs and the goods produced are sold to customers. This represents cost of good sold which consist of raw material, direct labor and manufacturing overhead. The cost of good sold is presented in the income statement after Revenue.

A merchandise company has its cost of good sold as the amount of goods purchased from outside to resale this also includes additional expenditure which is needed to bring them to the location such as freight and insurance. So this cost is easy to calculate than the manufacturer cost. The cost of good sold is presented in the income statement after Revenue.

Service organization do not sell goods they sell services that means these companies do not have cost of good sold. The major expenses is labor expenditure.

ekkarill92 answered 1 year ago

Discuss ways that a traditional income statement would differ depending on whether the business is a...

Discuss ways that a traditional income statement would differ depending on whether the business is a service organization, merchandiser, or manufacturer. Please be sure to validate your opinions and ideas with citations and references in APA format.

Sam was interested in whether her friend’s responses to a Facebook event invitation would differ depending...

Sam was interested in whether her friend’s responses to a Facebook event invitation would differ depending on their primary method of travel. The results are displayed in the following table. Using the 0.05 significance level, is type of response related to type of travel? Yes No Maybe No response Car 10 3 9 8 Train 20 10 8 32

Describe the basic arrangement of a reflex. How does it differ depending on whether it is...

Describe the basic arrangement of a reflex. How does it differ depending on whether it is from the ANS or somatic NS?

How do the cost flows in a retail organization or service organization differ from those in...

How do the cost flows in a retail organization or service organization differ from those in a manufacturing organization?

consider what you feel would be an optional capital structure. Would your recommendation differ depending on...

consider what you feel would be an optional capital structure. Would your recommendation differ depending on the type of industry? Why/why not? What would you expect the impact to be on earnings per share (EPS) at an optimal capital structure? Is this impact important to you? Why/why not?

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business...

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. ____2.The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. ____3.There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2)...

What is the difference between a contribution income statement and a traditional income statement? Under what...

What is the difference between a contribution income statement and a traditional income statement? Under what circumstances would a firm use each?

Select True or False, depending on whether the corresponding statement is true or false. 1. An...

Select True or False, depending on whether the corresponding statement is true or false. 1. An unbiased estimator is a sample statistic that has a mean (or expected value) equal to the value of the population parameter. 2. In order to construct a confidence interval estimate of the population mean, the value of the population mean is needed. 3. The larger the level of confidence used in constructing a confidence interval estimate of the population mean, the narrower the confidence...

Outline how taxes and tradable permit systems differ depending on whether environmental regulators wish to reduce...

Outline how taxes and tradable permit systems differ depending on whether environmental regulators wish to reduce pollutuon emission levels or pollution concentration levels.

1. How does e-communication differ from traditional communication methods in the contemporary organization?

Question