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 costs are most likely to be controllable at the production supervisor level?

Raw material purchase prices

Direct labor costs

Depreciation on factory equipment

Property taxes on the manufacturing facility

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Verified step by step guidance

Understand the concept of controllable costs: Controllable costs are those that a manager or supervisor has the authority to influence or change within their area of responsibility during a specific time period.

Analyze each cost option provided in the problem: For each cost, determine whether the production supervisor has direct control over it. For example, raw material purchase prices are typically negotiated by the purchasing department, not the production supervisor.

Focus on direct labor costs: Direct labor costs are associated with the wages of workers directly involved in production. The production supervisor can influence these costs by managing work schedules, productivity, and overtime.

Evaluate depreciation on factory equipment: Depreciation is a fixed cost based on the historical cost of the equipment and its useful life. The production supervisor cannot control this cost.

Consider property taxes on the manufacturing facility: Property taxes are determined by local government and are not within the control of the production supervisor. Therefore, direct labor costs are the most likely to be controllable at the production supervisor level.