VWV Company Income Statement.docx - Running Head VWV COMPANY INCOME STATEMENT VWV Company Income Statement Students Name Institution VWV COMPANY INCOME

VWV Company Income Statement.docx - Running Head VWV...

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Running Head: VWV COMPANY INCOME STATEMENT VWV Company Income Statement Student’s Name Institution
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VWV COMPANY INCOME STATEMENT 2 1. Is VWV Company a manufacturer/reseller or a service company? VWV Company is not a service company but rather a manufacturer or reseller company. This is due to the presence of cost of goods sold in the income statement. Service companies do not have this kind of expense. 2. Cost of Goods Sold and its significance Cost of goods sold is the total amount of all the costs related to production of the goods to be sold. Cost of goods sold includes material costs and direct labor costs. It is important since it used in determining the selling price of a product. For a product to be attached a price tag, the costs of its production is considered. In this case, cost of goods sold amounts to $200,000. 3. Does the Company have employees? VWV Company has employees. This is evidenced by the presence of salaries and payroll taxes in the expenses in the income statement.
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  • Winter '16
  • Professor Obura Oluoch
  • Income Statement, Generally Accepted Accounting Principles, Company Income Statement, VWV Company

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