Which of the Following Costs Would Appear on the Income

question 98

Multiple Choice

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

• A) Direct labor
• B) Cost of goods manufactured
• C) Direct materials
• D) Operating expenses

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Definitions:

Whistle-blower

An individual who exposes illegal, unethical, or wrong practices within an organization to the public or authorities.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Illegal Accounting Procedures

Practices in accounting that violate laws or regulations, often intended to conceal true financial performance or to deceive stakeholders.

Whistle-blowers

Whistle-blowers are individuals who expose illegal, unethical, or fraudulent activities within an organization to the public or to those in positions of authority.