The terms period cost and product cost are sometimes used to describe certain items in financial statements. Define these terms and distinguish between them. To what types of items does each apply?

Q: The definition of the cost is the collection of cost data in some organized way by means of an…

A: Cost is amount of cost incurred

Q: Explain what is Flow Cost Accounting, its nature.

A: Material flow cost accounting or flow cost accounting can be defined as a method used by firms and…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A:

Q: Compare and contrast the differences and similarities between Cost of Goods Sold and Net Profit.

A: Cost of goods sold (COGS) represents the direct cost of producing the goods. These are the direct…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Unrealized profit is the part of profit which is not realized till the end of the accounting year.…

Q: . What are the three principle objectives of cost accounting system?

A: Cost accounting system is a system in which all the costs related to manufacturing, selliing the…

Q: Period cost shown in statement of financial position. True or false

A: The period costs are the costs that are incurred in the period they are expensed.

Q: What is Re-order quantity? What is Re-order level? What is Maximum stocklevel? With respect to…

A: Inventory management consist of various levels namely re-order level, re-order quantity, maximum and…

Q: amount should be reported as cost of goods sold?

A: The inventory should be valued at the lower of cost or net realizable value. The value of inventory…

Q: How can the amounts shown on the- nancial statements be called historical ?cost amounts

A: Answer A. The correct answer is option (C) When an item was originally obtained whether that…

Q: An example of an expense classifi cation by function is: C . cost of goods sold.

A: Expenses are either classified by nature or by function.

Q: What are the differences in the accounting forinventoriable versus period costs?

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Operating expenses are comprised of the following: O General and Administrative Expense, Cost of…

A: Operating Expenses (OpEx) are those expenses which are directly associated with the day to day…

Q: Explain whether the cost accounting system primarily supports internal or external reporting.

A: Cost Accounting System: Cost accounting system refers to as a framework designed by the company to…

Q: How do cost management and financial accounting differ?

A: The accounting is a process to identify, classify and record the transactions of the business and…

Q: Determining the unit cost of manufacturing a product is an output of financial accounting. True…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Explain why product costs are capitalized but period costs are expensed in the current accounting…

A: Product Cost The cost of the goods refers to a price paid to manufacture a product. It requires…

Q: What is the purpose of Classifying Costs for Financial Statement?

A: Cost Classifications helps the management in analysing the overall effect on the assets and…

Q: what is production cost? what is tangible assets? what is operating expenses? what is cost of goods…

A: Expenses are those costs which are required to be incurred by the company to smoothly run the…

Q: Cost classifications used for preparing financial statements Include: Multiple Choice Product cost…

A: Answer : Concept :  Product cost is the cost that can be directly associated with the product and…

Q: In a responsibility accounting system, should the recording of revenue and costs begin at the…

A: Responsibility center: A department or unit of a corporation where the management assigns the…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: objectives of the accumulation and reporting of cost accounting information

A: Cost accounting information is the information regarding costs regarding activities, processes, or…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

Q: Explain how the accounting definition of an asset is related to the choice between absorption and…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: Can you label revenue, loss, total costs, dollars, variable cost, and fixed cost on the provided…

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…

Q: If a functional expense classification is used for the statement of comprehensive income, what must…

A: Expenses: Expenses means money spent for getting revenue to the entity. It involves cost of…

Q: What do you mean by cost accounting? Write about its types in brief with examples

A: Accounting is a procedure whereby an individual can record financial transactions of the business.…

Q: Describe the impact that the cost constraint has on reporting accounting information.

A: Accounting information not only must be relevant and faithful, they must also pass the economic test…

Q: Operating expenses are comprised of the following: General and Administrative Expense, Cost of…

A: Solution Concept Cost of goods sold includes the direct material and direct labor and shall be…

Q: Explain the following and describe its impact on the financial statements: a. cost principle b.…

A: Financial statements are written records that present the business activities and the financial…

Q: Describe and compare the cost flow assumptions used to account for inventories.

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Q: Define “cost” as applied to the valuation of inventories.

A:

Q: The branch of accounting that deals in particular with the different cost concepts in order to…

A: Accounting is a process of identifying, recording, classifying, summarising and analysing business…

Q: Describe accounting concepts useful in classifying costs.

A: Costs of a business can be classified on various basis On the basis of cost behaviour On the basis…

Q: What is the role of Cost Accounting in Price Determination ?

A: The primary difference between fixed as well as variable costs is made in cost accounting.…

Q: Costs of a product that are regarded as an asset for financial reporting under GAAP are called

A: Cost of product are regarded as an asset if the product is not yet sold. Product cost are also known…

Q: When preparing cost estimates for account analysis purposes, should the costs be extracted from the…

A: Cost estimation is essential for every company to help managers in relevant decision-making. Cost…

Q: e category you put cost accounting, inventory management and budgeting?

A: Accounting is called the process of compiling and checking all the transactions of a company in…

Q: The terms period cost and product cost are sometimes used to describe certain items in financial…

A: The expenses specifically associated with the manufacture of a good or service planned for sale are…

Q: How do the product costs move through the various accounts and affect the balance sheet and income…

A: Every transaction that takes place in a firm is reflected in various accounts and eventually gets…