Income statement and Business Type DQs
Q1- Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer?
Q2- Could we use managerial accounting “tools” to assess the profitability of an organization other than a manufacturing business, or are the topics we are learning only related to manufacturing?
3Q-If we could use these concepts in service and/or merchandising businesses, how would we go about doing so?
Let’s discuss the statement of cost of goods manufactured (COGM) in relation to COGS and the income statement. What specifically does the statement of COGM reflect? Which accounts and what type of accounts are they (assets, expenses, liabilities, etc.)? What goes into each account? Provide an example
Q4- We covered fixed costs in our class discussions. Let’s discuss fixed costs in more detail. These can be either committed costs or discretionary. How are these terms defined? What are some examples of each?