A Merchandiser Need Not Calculate Cost Per Unit as It

question 52

True/False

A merchandiser need not calculate cost per unit as it resells goods that are already manufactured.

Prepare traditional and contribution format income statements.

Identify and calculate incremental manufacturing costs.

Understand the ethical considerations in financial reporting.

Analyze the opportunity cost in decision making scenarios.

---

Definitions:

Retained Earnings

Retained earnings refer to the cumulative amount of net income a company retains, rather than distributing it to shareholders as dividends.

Net Income

The remainder of a company's total revenue after deducting taxes, expenses, and any other costs.

Shareholders' Equity

The portion of the company's assets that belongs to the shareholders after all liabilities have been subtracted.

Dividends in Arrears

Unpaid dividends of cumulative preferred stock for the designated period.