1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that product costs are distinguished from period costs? 3.) Explain why financial statement analysis is important

1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that product costs are distinguished from period costs? 3.) Explain why financial statement analysis is important

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2Q: Explain how the income statement of a manufacturing company differs from the income statement of a...

See similar textbooks

Related questions

Q: Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000…

A: Introduction: EPS: EPS stands for Earnings per share. It tell the profit earned on each outstanding…

Q: The following ratios gauge a bank’s leverage EXCEPT* Bills Payable to Capital Accounts Capital…

A: Leverage ratio assess the ability of the company (here Bank) to meet its financial obligation. The…

Q: Thuy worked as the assistant manager at Burger Crown through August 2021 and received wages of…

A: The social security taxes are the payroll taxes required to be paid by the employers and employees.…

Q: XYZ Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…

A: Fixed costs are costs that do not change with the change in the level of output. Budgeted…

Q: Starting from the separate inventory balances of the affiliates, the consolidated inventory balance…

A: Consolidation of accounting books means combination of accounts of parent company and subsidiary…

Q: You were assigned to audit the borrowings of your client, Benedict Company, as of and for the year…

Q: ND 75% FOR ENDING INVENTORY.

A: Conversion cost refers to those costs involved in converting the direct material into finished…

Q: Many diverse types of entities undergo audits. Provide three reasons for each of the following types…

A: GIVEN Many diverse types of entities undergo audits. Provide three reasons for each of the…

Q: Planet of the Crepes, Inc. is preparing its master budget for its first month of business. It…

A: Budgeted sales revenue i8s calculated by multiplying the Budgeted no. of units sold with the sales…

Q: The entry to cancel the effects of the intercompany transactions in preparation of the Consolidated…

A: Introduction:- Financial transactions Between parent company and its subsidiaries are treated as…

Q: rofit on end

A: Consolidation of accounting books means combination of accounts of parent company and subsidiary…

Q: Harrison Co. purchases 5,000 of the 50,000 outstanding ordinary shares of Taylor, Inc for £500,000…

A: Formula: Investment balance at year end = Beginning investment balance + net income - Dividends paid

Q: Kate Collins has always been good at putting together rhymes for any occasion. Kate is a recent…

A: Journal Entries- Journal entries are the visual representation of business transactions. T-accounts,…

Q: ear in the consolidated adjusting journal entries for

A: Given as, Sales price = $820,000 Salvage value of equipment when sold = $520,000

Q: The cash account of the AA Corporation as of December 31, 2022 consists of the ff: On deposit in…

A: The bank reconciliation statement shows the reconciliation between the cash balance as per book…

Q: 46. How much is the correct cash balance at June 30? The cash account of the Siopao Corporation as…

A: Cash is one of the important liquid asset of the business, which is reported in balance sheet. It…

Q: 308 Chapter 9 30. Carnation Company has two products: A and B. The company uses. The estimated…

A: Activity based costing is that method of costing under which all type of indirect costs are being…

Q: QUESTION 44 Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000…

A: Unavoidable allocated overhead are those overheads which will continue to be incur even if the…

Q: Neither Both The one that is registered for Copyright protect

A: The answer has been mentioned below.

Q: enue = 9.5 M expense = 4M terest rate=1

A: DISCLAIMER “Since you have asked multiple question, we will solve the first threr subparts as per…

Q: Briefly explain the decision-makers emphasis and the decision-models emphasis of decision usefulness…

A: Accounting is the process of recording, analyzing, summarizing, and interpreting the financial…

Q: Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently,…

A: The question is based on the concept of Cost Accounting.

Q: SaKanya Company provided the following information on December 31, 2020: Cash in Bank (net of bank…

A: Current Assets are assets that are expected to be sold or consumed or converted into cash within a…

Q: Considering this example as a retail company $23.22 Billion Net Revenue Costs of Goods Sold $29.38…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Selected transactions completed by Breezeway Construction during the current fiscal year are as…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Keshav Ltd., earned a net profit of ₹4,00,000 after considering the following items: Depreciation…

A: Companies Act has prescribed certain rules for determining the remuneration payable to the managing…

Q: pulate the following “T-accounts” with the following data $100 million in mortgage-backed…

A: T Shape Extracts of Balance Sheet

Q: In its first month of business, Soles for Souls, Inc., started and completed 5,000 shoes and sold…

A: Cost of goods manufactured means total manufacturing costs; including all direct materials, direct…

Q: Boerkian Co. started 2013 with two assets: Cash of 526,000 (Stickles) and Land that originally cost…

A: Exchange rate refers to" the price of a country's money in relation to another country's money."An…

Q: The accounting equation is assets 1 liabilities 5 owners’ equity.; True or False

A: Accounting is the detailed process of recording, classifying and analysing financial information in…

Q: x invoic

A: A tax invoice is a statement issued for the delivery of taxable goods and services. A tax invoice…

Q: What effect does the increase in fixed costs have on the break-even units? 1. Decrease 2. Increase…

A: Introduction: Break even units: The point where there is no profit nor loss for the units sold.…

Q: Statement 1. Selling cost is treated as expenses under variable costing. Statement 2. If sales for…

A: Variable costing and absorption costing are two methods of valuing the cost of units produced.…

Q: A capital budget will reflect expenses to re-paint the guest room corridors, this is done annually…

A: Solution Concept Capital budget is the budget that incorporates and reflect the capital expenditures…

Q: Comparison of Depreciation Methods P7.…

A: Depreciation is the decrease in the value of assets in the books of accounts of the company due to…

Q: Make-or-Buy, Traditional and ABC Analysis Brees, Inc., a manufacturer of golf carts, has just…

A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…

Q: A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional…

A: Introduction: Additional paid in capital: The term additional paid in capital used when the shares…

Q: A retail company determines its selling price by marking up on variable costs 56.25%. In addition,…

A: The contribution margin represents the difference between the sales price and the variable cost of…

Q: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: What would be the most likely cause of an unfavorable pay rate variance together with a favorable…

A: when we talk in context of the counting the variance implements the difference between the busted…

Q: me (1) Game xed Cost for Food (P100,000) mace (P240,000) both Space (P1,750) tal for One (1) Game:…

A: Basic Concepts of Accounting

Q: Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: Classify the following whether they are asset, liability or equity. Classify whether they are…

A: Accounting equation of the business has three important elements. These are Assets, Liabilities…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: Trade discount is that discount which is being given to all the customers on the list price of the…

Q: QUESTION 34 Which of the following statements is true? O Indirect costs are allocated to cost…

A: Cost can be allocated on basis of two categories such as direct cost and indirect cost. Direct can…

Q: ABC Company has received a request for a special order of 6,000 units of product A for $21.20 each.…

A: Increase (decrease) in operating income if special order is accepted = (Sales price per unit -…

Q: 2. Keep-Or-Drop Decision, Alternatives, Relevant Costs Reshier Company makes three types of rug…

A: 1. Model 1 Model 2 Model 3 Total Sales 240000 550000 655000 1445000 Less: Variable COGS…

Q: Let’s modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion…

A: A Break-even point is that point of sale where the revenue generated and cost incurred break even…

Q: Use the following information to calculate Honest Tea, Inc.'s Cost of Goods Sold for the year. Note:…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Given the following: FIFO method: 16 units left in ending inventory. 1/1/2018 Beginning inventory 9…

A: Computation of number of units sold. Opening stock purchases - ending inventory 9 + 14 + 20 + 14 -16…

Question

1.) Explain one difference between manufacturing and merchandising business.

2.) Why is it that product costs are distinguished from period costs?

3.) Explain why financial statement analysis is important.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.
Which of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?
Show your solution in good accounting form How much is the cost of goods manufactured?
Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performance
4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What is the formula in computing Net Income (Loss) for Service Entities? 6. What is the formula in computing Net Sales? 7. What is the formula in computing Cost of Goods Sold?
How cost accounting is useful where financial accounting could not be answered. Give any exampleto support your answer.
3. Determining the unit cost of manufacturing a product is an output of financial accounting.
How much is total cost of goods manufactured? ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :)
How you relate the differential cost with management of revenue in management accounting.
In your own understanding, please answer the following: 1. What are the importance of knowing, analyzing and assessing the financial statement in the decision making of internal and external users in the organization? 2. Explain briefly how do you understand the concept of Cost of Good Sold.
MANAGEMENT ACCOUNTING (COST-VOLUME PROFIT ANALYSIS)
What are the key differences between financial accounting and managerial accounting?