Most performance reviews are conducted by outside auditing agencies to avoid bias and internal discrepancies

Partial income statements of Company A and Company B are provided below

Company A Revenue $80,000 Expenses: Utilities Expense $5,000 Salaries Expense 15,000 Rent Expense 3,2000 Total Expenses 23,700 Operating Income $56,300 Company B Revenue $50,000 Cost of Goods Sold: Beginning Merchandise Inventory $4,000 Purchases and Freight In 23,000 Ending Merchandise Inventory (5,500 ) Cost of Goods Sold 21,500 Gross Profit $28,500 Which of the following statements is true? A) Company A is a merchandising company. B) Company B is a manufacturing company. C) Company A is a manufacturing company. D) Company A is a service company.

A careful analysis of customer behavior leads to a better understanding of what kind of channel structure is necessary to satisfy the different segments

Indicate whether the statement is true or false