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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

In a manufacturing operation, building rent is considered:

a manufacturing overhead cost

a selling expense

a direct labor cost

a direct material cost

Previous problemNext problem

Verified step by step guidance

Understand the concept of manufacturing overhead costs: These are indirect costs incurred during the production process that cannot be directly traced to a specific product. Examples include factory rent, utilities, and equipment depreciation.

Analyze the nature of building rent: Building rent is a cost associated with the facility where production occurs. It is not directly tied to the production of a specific product but is necessary for the overall manufacturing process.

Differentiate between direct costs and indirect costs: Direct costs, such as direct labor and direct materials, are directly attributable to the production of specific goods. Indirect costs, like building rent, are shared across all production activities and fall under manufacturing overhead.

Exclude other options: Selling expenses are costs related to marketing and distribution, not production. Direct labor and direct material costs are directly tied to the creation of products, which does not apply to building rent.

Conclude that building rent is classified as a manufacturing overhead cost because it is an indirect cost necessary for the production process but not directly traceable to individual products.