On a manufacturing company's income statement, which of the following is true?1. Direct labor is separately listed as an expense.2. Direct materials is separately listed as an expense.Only statement I is true.Neither statement is true.Only statement II is true.Both statements I and II are true.O O O O

1. Income Statement - Income Statement is the summary of income earned and expense incurred during…

Answered: On a manufacturing company's income…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5MC: Which of the following represents the components of the income statement for a manufacturing...

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For external reporting purposes, costs must be classified into only three categories. (2) Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period. a. BOTH statements are FALSE b. BOTH statements are TRUE c. 1st statement FALSE d. 1st statement TRUE
For a manufacturing entity, which of the following is treated as business expense? a. Raw materials b. Labor c. Factory overhead d. None of the above e. All of the above
1. Product costs are expensed on the balance sheet statement in the period incurred (true or false). 2. Direct labor is period Cost (true or false) 3. Non-manufacturing costs are not treated as period costs (true or false)
The largest expense of most manufacturing firms is?a. Salaries Expenseb. Amortization Expensec. Rent Expensed. Cost of Goods Sold
Which of the following statements is false? O a. Product costs are inventoriable costs O b. Product costs show up on the income statement in cost of goods sold O c. Product costs are automatically deducted and expensed during the current accou period O d. Product costs become expenses when the units are sold
Non-manufacturing costs are recognized as an expense in the income statement for the period in which they are incurred.
Determining the unit cost of manufacturing a product is an output of financial accounting. True False
The purpose of preparing the manufacturing account is to calculate: Gross profit O Manufacturing profit O Net profit O Cost of production O O O O
[S1] Costs that are expensed when incurred are called period costs. [S2] In financial accounting, all manufacturing costs are product costs. a. both are trueb. both are falsec. S1 is trued. S2 is true
2. A manufacturing company reports cost of goods manufactured as a(n) a. current asset on the balance sheet. b. administrative expense on the income statement. C. component in the calculation of cost of goods sold on the income statement. d. component of the raw materials inventory on the balance sheet.
1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.
Which of the following statements is/are FALSE: I. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows. V. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset’s useful life and increase the asset’s capacity is…

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