FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:
-
- Direct material ______$5/kg
- Direct labor_________$10/hour
- Total Manufacturing
overhead __________________$30000
The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).
1.Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.
2. Form question one above considering all the
3.Evaluate sunk costs and fixed costs from the perspective of relevant information for decision making.
4. Why is accounting called the language of business? Support with example
I need to get answer for number 1 which is
1. Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why?
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