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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

The first step in activity-based costing (ABC) is to:

Prepare the financial statements.

Assign costs to products based on direct labor hours.

Calculate the total overhead costs for the period.

Identify and define the activities that consume resources.

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Verified step by step guidance

Understand the concept of Activity-Based Costing (ABC): ABC is a costing method that assigns overhead and indirect costs to specific activities, which are then allocated to products or services based on their consumption of those activities.

Recognize the importance of identifying activities: The first step in ABC is to identify and define the activities that consume resources. Activities are tasks or processes that incur costs within an organization, such as machine setups, inspections, or order processing.

Define the activities clearly: Break down the operations into distinct activities that contribute to the production or service delivery process. Each activity should be measurable and directly linked to resource consumption.

Categorize the resources consumed by each activity: Determine the types of resources (e.g., labor, materials, utilities) that are used by each activity. This helps in understanding the cost drivers associated with each activity.

Prepare to assign costs to activities: Once the activities are identified and defined, the next step is to assign costs to these activities based on the resources they consume. This sets the foundation for accurately allocating costs to products or services later in the ABC process.