ad the equirement 1. Distinguish between manufacturing, merchandising-, and service- companies comparies provide services or intangible products to their customers-for example, legal advice or audits Manfacturing-sector companies purchase materials and components and convert them into different finished goods Merchandising-sector companies purchase and then sell tangible products without changing their basic form Requirement 2 Distinguish between inventoriable costs and period costs Select whether each statoment is explaining an inventoniable cost or a period cost. re all costs in the income statement other than cost of goods sold. are all costs of a product that are regarded as an aset when they are incurred and then become cost of goods for a mandatringcompany aro included in workin-process ad frished goods inventory tthey arementoried") to build up the product is sold t are troated as expenses at the time they are inourred because they are presumed not to benofit future periods (or because there is ont ewidance to condlude hat ouch benefit exists) Expensing these costs immediately best matches expenses to revenues Click to select w your aswersi and then cick Check Answer Clear A 24 84