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

A job order costing system would best fit the needs of a company that makes:

refined petroleum products in continuous processes

identical cans of soup in large batches

custom furniture for individual clients

standardized pencils produced in mass quantities

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Verified step by step guidance

Understand the concept of a job order costing system: It is a costing method used by companies that produce unique or customized products. Costs are assigned to specific jobs or orders, making it suitable for businesses where each product or service is distinct.

Analyze the options provided in the problem: Refined petroleum products, identical cans of soup, and standardized pencils are examples of products made in continuous or mass production processes. These processes typically use process costing systems, not job order costing.

Focus on the correct answer: Custom furniture for individual clients fits the criteria for a job order costing system because each piece of furniture is unique and tailored to the client's specifications.

Explain why job order costing is appropriate for custom furniture: Costs such as materials, labor, and overhead can be tracked and allocated to specific jobs or orders, ensuring accurate cost determination for each unique product.

Conclude by emphasizing the distinction between job order costing and process costing: Job order costing is used for customized, individual products, while process costing is used for standardized, mass-produced items.