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 a direct cost of manufacturing a sport boat?

Factory supervisor's salary

Depreciation on factory equipment

Cost of fiberglass used in the boat's hull

Advertising expenses for the sport boat

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Verified step by step guidance

Understand the concept of direct costs: Direct costs are expenses that can be directly traced to the production of a specific product. These costs are directly associated with the manufacturing process and vary with the level of production.

Analyze the options provided: Review each cost to determine whether it can be directly traced to the production of the sport boat.

Evaluate the factory supervisor's salary: This is an indirect cost because it is not directly tied to the production of a single boat but rather supports the overall manufacturing process.

Evaluate the depreciation on factory equipment: This is also an indirect cost because it is a fixed expense related to the use of equipment over time and cannot be directly attributed to a single boat.

Evaluate the cost of fiberglass used in the boat's hull: This is a direct cost because the fiberglass is a material that is specifically used in the production of the sport boat and can be directly traced to the product.