Which of the following are reported on the income statement as part of cost of goods? a. administrative expenses b. operating expenses c. cost of goods manufactured d. period costs

Question

Reynolds

Business

15 January, 15:40

Which of the following are reported on the income statement as part of cost of goods? a. administrative expenses b. operating expenses c. cost of goods manufactured d. period costs

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Ximena · Answer 1

Cost of goods manufactured

Explanation:

Cost of goods manufactured are reported on the face of income statement because it's a critical factor in arriving at the profit or loss position at the end of a period. Cost of goods manufactured takes cognizance of the material costs, labour and overhead costs involved in production. This determines the overall financial status of a company, and allow a decision maker to know if the business is doing good or not.