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McGraw-Hill's Connect - Ebook

McGraw-Hill's Connect - Ebook - Chapter2 Basic Cost...

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Chapter2: Basic Cost Management Concepts and Accounting for Mass Customization Operations Costs on Financial Statements The distinction between product costs and period costs is emphasized by examining financial statements from three different types of firms. Income Statement L earning O bjective 3 Describe the role of costs in published financial statements. Exhibit 2-3 displays recent income statements, in highly summarized form, from Southwest Airlines Company , Caterpillar, Inc. , and Walmart Stores, Inc. These companies are from three different industries. Representing the service industry is Southwest Airlines , a major airline based in the southwestern United States. Caterpillar is a heavy equipment manufacturer. Walmart Stores is a large retail firm with merchandising operations throughout most of the nation. Selling and administrative costs are always period costs on any type of company's income statement. For example, Caterpillar lists $3.19 billion of selling, general, and administrative
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