The income statement of a manufacturing company separates the product costs from the period costs.

Question

Quizplus · Accepted Answer

This is true. The income statement of a manufacturing company typically includes a section for cost of goods sold (COGS), which includes the product costs (such as materials, labor, and overhead) associated with the goods that were sold. The income statement also includes other sections, such as operating expenses, which include the period costs (such as marketing, administrative, and other general expenses) that are not directly related to production. The separation of product costs from period costs is important for understanding the profitability of the business and making decisions about pricing, production, and other aspects of the operation.

The Income Statement of a Manufacturing Company Separates the Product