Question

Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?

Your answer:
	Direct labor
	Cost of goods manufactured
	Direct materials
	Operating expenses

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

Your answer:
	Yes
	No

Which of the following could be found on the income statement of a service company?

Your answer:
	Rent expense
	Cost of goods manufactured
	Cost of goods sold
	Manufacturing overhead

Answer 1

Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?

answer : operating expenses

operating expenses includes :

selling

general and administration

direct lobor, cost of goods manufactured and direct materials appears on the income statement of manufacturer.

so coorect option is operating expenses.

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

answer : no

income statement
sales	xxx
less cost of goods sold	-xxx
gross profit	xxx
less : operating expenses :
selling and administation	-xxx
operating profit	xxx

so correct answer is no.

Which of the following could be found on the income statement of a service company?

answer : rent expenses

income statement of service company
revenue	xxx
less : operating expernses
wage	-xxx
rent	-xxx
advertise	-xxx
operating income	xxx

cost of goods manufactured, cost of goods sold and manufacturing expenses appears on income statement of manufacturer.

so correect option is rent expenses.

please giveyour feed back and rating