Which of the Following Accounts Will Not Be Found in the Cost

question 75

Multiple Choice

Which of the following accounts will not be found in the Cost of Merchandise Sold section of the income statement for a company using the periodic inventory method?

• A)Purchases
• B)Freight-In
• C)Selling Expense
• D)Merchandise Inventory

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Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services.

Service Business

A type of business that provides intangible products, such as expertise or time, to customers.

Location

The particular place or position where a person or property, especially a business, is situated, influencing factors like accessibility, visibility, and convenience.

Customer

An individual or business that purchases goods or services from a company.