What three categories separate the expenses on a manufacturer's income statement?
A) variable, fixed, and direct
B) production, period, and indirect
C) production, selling, and administrative
D) materials, work-in-process, and finished goods

Question

Quizplus · Accepted Answer

The three categories that separate expenses on a manufacturer's income statement are production, selling, and administrative. Production expenses include the cost of raw materials, labor, and overhead associated with manufacturing goods. Selling expenses include the costs associated with promoting and distributing products. Administrative expenses include the costs associated with managing the business, such as salaries, rent, and utilities for the office.

What Three Categories Separate the Expenses on a Manufacturer's Income