1. How does the Cost of Goods Sold section of the income statement differ between merchandising and manufacturing companies?

EX.18-5; CONCEPTS AND TERMINOLOGY;

a. Advertising cost are usually viewed as (period, product) costs;

b. feedback is often used to (improve, direct) operations;

c. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses);

d. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object);

e. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory);

f. Factory overhead costs combined with direct labor costs are (prime, conversion) costs;

g. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor compound of product costs;