BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raw material
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Finished goods
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Work in process
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Cost of good manufactured
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Detailed explanation-1: -Answer and Explanation: The correct answer is option a. Cost of Goods Sold.
Detailed explanation-2: -The answer is (c) Interest revenue. Interest revenue is the company’s earnings from interest. This is reported in the income statement, not in the balance sheet.
Detailed explanation-3: -COGS includes costs such as raw materials and labour that vary depending on the amount of product you produce. It doesn’t include indirect costs that the business incurs regardless of how much is produced-for example, office expenses, administrative salaries or marketing costs.
Detailed explanation-4: -The company then presents COGS in the income statement. Meanwhile, the cost of goods manufactured appears in the current assets section of the balance sheet.
Detailed explanation-5: -The answer is c) accounts receivable, retained earnings, utilities payable, accumulated depreciation would all appear on the balance sheet.