Differentiate between physical units and equivalent units

Q: Define the term line positions.

A: Employees in the line positions are primarily responsible for achieving the goals of the…

Q: Define specific identification

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: Define composition

A: Composition: The composition is the act of putting something jointly, or the grouping of rudiments…

Q: The standards for direct materials are made up of which of the following components?

A: The pricing standard and quantity standard are the elements of direct material variances. Direct…

Q: Define Assigning.

A: Assigning is a process of assignment. Assignment means a transfer of a right to receive a…

Q: What is an operating segment?

A: Operating segment: It is defined as providing information about the business actives with an…

Q: Define the term transportation costs.

A: Cost: Cost is that amount which is paid to get something from the any supplier and the amount which…

Q: Define equivalent units of production.

A: Definition:   Process costing: It is a method of cost accounting, which is used where the production…

Q: Define the term materiality concept.

A: Accounting concept:   They are the basic rules and assumptions that forms the base for recording the…

Q: Describe the functions and powers of ASIC

A: Australian securities and investment commission is a commission made in 1998 of Australian…

Q: Equivalent Units of Materials Equivalent Units of Conversion

A: Process costing: process costing is a costing method used by companies that produce homogeneous…

Q: Define contract assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Differentiate the following terms - External and internal information

A: Internal data is information generated from within the business, covering areas such as operations,…

Q: Difference between physical units and equivalent units

A: Here, units mean the amount of goods in inventory like goods which are in progress, transferred…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Define tangible.

A: Tangible means anything that can be touched and  seen.

Q: What are the equivalent units?

A: Equivalent units:           Completed units   150       Ending Inventory   20       Total…

Q: Define association.

A: Accounting Information System (AIS):   The system which helps to gather, store and process the…

Q: Define Recognition.

A:

Q: Define cost of equipment.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Define Hedging.

A: Hedging is the transfer of risk from a risky financial instrument to another instrument by buying or…

Q: Match the terms with the definitions.

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarising and…

Q: Describe the purpose of raw material subsidiary ledger.

A: Raw material subsidiary ledger: This ledger refers to the individual account, which records the all…

Q: Describe the term cost of the direct materials.

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Define the term Net method.

A: As per the net method, the company records the amount of purchase by deducting any potential…

Q: What is a reportable operating segment?

A: Operating segment is a segment of a company which can generate its own revenue and has its own…

Q: Describe the concept of an equivalent unit and how to compute equivalent units

A:

Q: Describe the effects of using direct and indirect material.

A: Direct materials are required directly in the production process like wood required to make…

Q: Define Physical location exchange

A: Exchange relates to a platform where the asking and bidding of various securities of different…

Q: What is consignment

A: Consignment is a form of arrangement between two parties in which one party sends goods to another…

Q: Define Direct method

A: The Direct Method is Described Below -

Q: what is articulation

A: Financial statement They are the records of financial activities which are formal in nature. It…

Q: Distinguish between conceptual and physical systems.

A: Accounting Information System: The system which helps to gather, store and process the accounting…

Q: Define controller

A: The controller generally reports to the chief financial officer of the company. In small companies,…

Q: Explain the measurement attributes employed in GAAP.

A: The measurement attributes employed in GAAP are as follows: Historical Cost Net Realisable Value…

Q: Define Materiality.

A: In accounting, materiality refers to the relative size of an amount. Relatively large amounts are…

Q: Define the term attest function.

A:

Q: Distinguish between direct material and indirect material.

A: Direct materials will be materials that are devoured during the creation of an item as either…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.