How Does a Manufacturing Company Report Cost of Goods Manufactured

question 42

Multiple Choice

How does a manufacturing company report cost of goods manufactured?

• A)as a current asset on the balance sheet
• B)as a component of the raw materials inventory on the balance sheet
• C)as a component in the calculation of cost of goods sold on the income statement
• D)as an administrative expense on the income statement

---

Definitions:

Gestalt Psychology

A psychological approach emphasizing the organization of perception and thinking in a "whole" rather than on the individual elements.

Continuous Flow

A process operation where inputs (materials, energy, or information) are constantly fed into the system, and products or services are produced without interruption.

Flow

A mental state of operation in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity.

Shaping

Shaping is a method of positive reinforcement in behavioral training where successive approximations toward a desired behavior are rewarded to teach a new behavior.