Which of the following would appear on an income statement of both a retailer and a manufacturer?
A) Direct labour
B) Selling expenses
C) Beginning finished goods inventory
D) Factory overhead

Question

Quizplus · Accepted Answer

Both the retailer and manufacturer incur selling expenses in order to promote and sell their products.

Note: 
A) Direct labour is typically only found on the income statement of a manufacturer as it relates to the production of goods. 
C) Beginning finished goods inventory is only relevant to a manufacturer as it represents the inventory that has been completed but not yet sold. 
D) Factory overhead is only relevant to a manufacturer as it refers to the indirect costs associated with manufacturing activities.

Which of the Following Would Appear on an Income Statement