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 indirect cost of manufacturing scooters?

Factory supervisor's salary

Direct materials used in production

Wages of assembly line workers

Cost of scooter wheels

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Verified step by step guidance

Understand the concept of direct and indirect costs: Direct costs are expenses that can be directly traced to the production of a specific product, such as materials and labor. Indirect costs, on the other hand, are expenses that cannot be directly traced to a single product and are often shared across multiple products or departments.

Review the options provided: Factory supervisor's salary, Direct materials used in production, Wages of assembly line workers, and Cost of scooter wheels.

Analyze each option: Direct materials (e.g., scooter wheels) and wages of assembly line workers are direct costs because they are directly involved in the production of scooters. The factory supervisor's salary, however, is an indirect cost because it is not directly tied to the production of a single scooter but rather supports the overall manufacturing process.

Classify the factory supervisor's salary as an indirect cost: This expense is part of manufacturing overhead, which includes costs that support production but are not directly attributable to specific units of output.

Conclude that the factory supervisor's salary is the correct answer as an indirect cost of manufacturing scooters, while the other options represent direct costs.