Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?

Your answer:
	Direct labor
	Cost of goods manufactured
	Direct materials
	Operating expenses

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

Your answer:
	Yes
	No

Which of the following could be found on the income statement of a service company?

Your answer:
	Rent expense
	Cost of goods manufactured
	Cost of goods sold
	Manufacturing overhead