2019-01-25T11:11:07+00:00 Assignments

Identify and classify the types of expenses associated with the operation of the selected organization

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Research Application

Research Application

Select either a service or a manufacturing organization of interest to you. Research the organization using the internet and other sources to gather and interpret information related to service and manufacturing organizations. Based on this research, do the following:

1) Identify and classify the types of expenses associated with the operation of the selected organization.
2) Review the income statement and balance sheet of the selected organization. What is your overall initial impression of the company based on the financial data you reviewed?

Write a 2- to 3-page report detailing your findings in MS Word format. Apply current APA standards for writing style to your work.

I have attached information to help guide you in the direction needed

Cost classification is an important consideration in the preparation and analysis of the income statement when considering differences among service, merchandising, and manufacturing organizations.

Consider the following examples:

  • A service organization would benefit from distinguishing between direct and indirect costs.
  • A merchandiser would want to distinguish between selling expenses and general and administrative expenses.
  • A manufacturer would find it important to properly classify expenses as period or product costs. In addition, manufacturing organizations must subdivide product costs into direct material, direct labor, and manufacturing overhead. Manufacturing organizations use a cost­of­goods manufactured statement to determine the cost of products manufactured during the accounting period.

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