Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following is an example of direct labor cost for a cell phone manufacturer?

Cost of raw materials used in manufacturing cell phones

Depreciation expense on factory equipment

Wages paid to assembly line workers who install components in cell phones

Salary of the factory manager overseeing production

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Verified step by step guidance

Understand the concept of direct labor cost: Direct labor cost refers to the wages paid to workers who are directly involved in the production process of a product. These costs are traceable to specific units of production.

Analyze the options provided: Review each option to determine whether it represents a cost directly tied to the production process or not.

Option 1: 'Cost of raw materials used in manufacturing cell phones' - This is not direct labor cost; it is classified as direct material cost because it pertains to the physical materials used in production.

Option 2: 'Depreciation expense on factory equipment' - This is not direct labor cost; it is considered an indirect cost or overhead because it is not directly tied to the labor involved in production.

Option 3: 'Wages paid to assembly line workers who install components in cell phones' - This is direct labor cost because these workers are directly involved in the production process. Option 4: 'Salary of the factory manager overseeing production' - This is not direct labor cost; it is considered an indirect cost or overhead because the manager is not directly involved in the physical production of cell phones.