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 materials, ________, and the cost of manufacturing overhead.

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