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

In the context of inventory accounting systems, which type of cost do companies typically have more direct control over?

Both direct and indirect costs equally

Direct costs, such as raw materials and direct labor

Neither direct nor indirect costs

Indirect costs, such as factory overhead and utilities

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Verified step by step guidance

Understand the difference between direct and indirect costs: Direct costs are expenses that can be directly traced to the production of specific goods or services, such as raw materials and direct labor. Indirect costs, on the other hand, are expenses that cannot be directly traced to a specific product, such as factory overhead and utilities.

Recognize that companies typically have more control over direct costs because these costs are directly tied to production activities and can be adjusted based on production needs or efficiency improvements.

Consider examples of direct costs, such as negotiating better prices for raw materials or optimizing labor schedules to reduce costs.

Understand that indirect costs, such as factory overhead and utilities, are often fixed or semi-variable and harder to control directly because they are shared across multiple products or departments.

Conclude that companies typically have more direct control over direct costs, as these are more closely tied to operational decisions and production processes.