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

In the context of the renewable-energy industry, batteries used in production are classified as which type of cost?

Administrative cost

Selling expense

Direct material cost

Indirect labor cost

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Verified step by step guidance

Understand the classification of costs in financial accounting: Costs are typically categorized into direct costs (directly traceable to the production of goods or services) and indirect costs (not directly traceable).

Review the definition of direct material cost: Direct material costs refer to the raw materials or components that are directly used in the production of goods or services. These costs are easily identifiable and traceable to the final product.

Analyze the role of batteries in the renewable-energy industry: Batteries are integral to the production process as they are used directly in the creation or operation of renewable-energy systems.

Compare batteries to other cost categories: Administrative costs and selling expenses are not directly related to production. Indirect labor costs pertain to labor that supports production but is not directly involved in creating the product. Batteries, however, are a direct material cost because they are a physical component used in production.

Conclude that batteries used in production are classified as direct material costs, as they meet the criteria of being directly traceable and essential to the production process.