Concept introduction:
There are three types of costs according to the unit of production; Variable, Fixed and Mixed. Variable costs change proportionally with the number of units produced and variable cost per unit remains constant. Fixed Cost remains same in totality irrespective of the number of units produced. The mixed cost is the mix of variable and fixed cost, some of its part is fixed and some variable.
To indicate:
The financial statement to find the amount of period cost
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
MANAGERIAL ACCTNG (LL) W/CNNCT CODE
- The _____ concept requires a company to report its economic activities on a regular basis for a specific period. a.objectivity b.cost c.matching d.time periodarrow_forwardprovide an example of a function/operation that is a cost for a companyarrow_forwardPeriod costs include: a. current liabilities on the balance sheet b. operating costs that are shown on the income statement in the period in which they are incurred c. current assets on the balance sheet d. operating costs that are shown on the income statement when the products are soldarrow_forward
- How do companies recognize revenue from a performanceobligation over time?arrow_forwardHow is Profit Margin calculated and what does It measure? What are some of the sources where one can Find financial information? What is an operating cycle and how it is Calculated?arrow_forwardA company’s current fi nancial position would best be evaluated using the:B . income statement.arrow_forward
- What are the Cost Product Cost and External Financial reporting?arrow_forwardIn a restated set of financial statements prepared in accordance with the current cost accounting, how much would appear as Net income?arrow_forwardBetween the operational cycle of a service company and a buying and selling company, which is the longest?arrow_forward
- Classify the Costs for Financial Statements?arrow_forwardWith respect to cost classifications for preparing financial statements:a. What is the total product cost?b. What is the total period cost?arrow_forwardHow do you prepare an income statement/calculate the operating income in managerial accounting?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education