Question

Which of the following are reported on the income statement as part of cost of goods? a.administrative expenses b.operating expenses c.cost of goods manufactured d.period costs

Answer 1

Answer:

Cost of goods manufactured

Explanation:

Cost of goods manufactured are reported on the face of income statement because it's a critical factor in arriving at the profit or loss position at the end of a period. Cost of goods manufactured takes cognizance of the material costs, labour and overhead costs involved in production. This determines the overall financial status of a company, and allow a decision maker to know if the business is doing good or not.