GAAP for Financial Reporting Requires That a Manufacturer's Inventory on the Balance

Multiple Choice

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: ________, the cost of direct labor, and the cost of manufacturing overhead.

A) the cost of direct materials
B) the cost of shipping
C) the cost of sales, general and administration (SG&A)
D) the expense of IT