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 NOT one of the three primary methods used to classify costs into their fixed and variable components?

Scattergraph method

High-low method

Account analysis method

Weighted-average method

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Verified step by step guidance

Understand the concept of cost classification: Fixed costs remain constant regardless of activity level, while variable costs change with activity level. Methods to classify costs help in separating these components.

Review the three primary methods used to classify costs into fixed and variable components: Scattergraph method, High-low method, and Account analysis method. These are widely recognized techniques in cost accounting.

Learn about the Scattergraph method: This involves plotting costs against activity levels on a graph to visually identify the relationship and estimate fixed and variable components.

Understand the High-low method: This uses the highest and lowest activity levels to calculate the variable cost per unit and fixed costs using the formula for a straight line: \( y = mx + b \), where \( y \) is total cost, \( m \) is variable cost per unit, \( x \) is activity level, and \( b \) is fixed cost.

Recognize that the Weighted-average method is not a primary method for classifying costs into fixed and variable components. It is used in other contexts, such as inventory valuation, but not for cost classification.