Explain why product costs are capitalized but period costs are expensed in the current accounting period.

Q: RUE OR FALSE Net income under GAAP highlights differences between variable and fixed costs.

A: Answer:   Net income under GAAP highlights differences between variable and fixed costs.   The…

Q: period cost shown in statement of financial position Ture or false

A: Period cost refers to the cost related to the passage of time. Since it is associated with the…

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: A traditional income statement classifies costs by function; costs are classified as either product…

A: The question is related to Classification of cost. The traditional income statement classifies costs…

Q: Cost of goods sold is an operating expense. A.True B.False

A: Introduction:- Income statement shows company's income and expenses over a  period of time. Formula…

Q: Explain two reasons why uncontrollable costs are included in the income statement

A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…

Q: Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting…

A:

Q: Non-manufacturing costs are recognized as an expense in the income statement for the period in which…

A: Nonmanufacturing overhead costs are expenses that have nothing to do with the production of a…

Q: Which of the following is subtracted from Gross profit to arrive at Operating income

A: Introduction:- Operating income can be calculated by deducting the cost of goods sold and operating…

Q: How the system of cost accounting has overcome the limitations of financial accounting. Explain it…

A: Cost Accounting -: Cost accounting is a procedure of administrative accounting that aims to…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: Period cost shown in statement of financial position. True or false

A: The period costs are the costs that are incurred in the period they are expensed.

Q: Which of the following is considered a fixed cost? a) rent expense b) marketing costs record…

A: The manufacturing company has undergone many costs. The process of the product will resulted in to…

Q: An example of an expense classifi cation by function is: C . cost of goods sold.

A: Expenses are either classified by nature or by function.

Q: Selling Expense is an example of     Period cost     Product cost     Cost of sales     Cost of…

A: Selling expense are those expense that incurred on selling the product after manufacturing. For…

Q: What are restructuring costs and where are they reported in the income statement?

A: Definition: Income statement: The financial statement which reports revenues and expenses from…

Q: Operating expenses are comprised of the following: O General and Administrative Expense, Cost of…

A: Operating Expenses (OpEx) are those expenses which are directly associated with the day to day…

Q: How do you compute the unadjusted cost of goods sold?

A: Cost of Goods Sold: Once the product is manufactured, that product is delivered to customers. The…

Q: Why is it difficult to assign a dollar figure to an intangible cost? Can it ever be done? Explain…

A:

Q: What are the main differences between a perpetual system  and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: c) Why do the Total Cost Method and the Cost of Sales Method lead to the same Operating Result?

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Product costs are the: Group of answer choices Non-manufacturing costs that are expensed in the…

A: The objective of the question is to identify the correct definition of product costs in the context…

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: The cost of inventory owned by a company is considered a : opportunity cost, sunk cost, or economic…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: What is an overbilling and how is it used in percentage - of - completion accounting?

A: In construction and project accounting, overbilling refers to the situation where a contractor…

Q: Explain how cost information differs for profit measurement/inventory valuation requirements…

A: Cost information serves different purposes in accounting and decision-making, leading to differences…

Q: Product costs are: * Treated in the same manner as period costs Subtracted from cost of goods sold O…

A: Product costs : Product costs are also known as inventoriable costs. These costs that are incurred…

Q: According to the historical cost system, what is the objective of accounting and the role of profit?…

A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: How do the accounting treatment of capital expenditures differ from thetreatment of manufacturing…

A: Capital expenditures are those expenditures which will provide benefit to the business in future…

Q: Discuss how non-production and production cost could affect the profitability

A: Introduction:- Cost are classified into two types based on cost types as follows under:- Non…

Q: Explain why there is a cost associated with retained earnings

A: Retained profits are the organization's undistributed accumulated profit. It is the profit after…

Q: Product costs are:     Treated in the same manner as period costs Subtracted from cost of goods sold…

A: There are two types of costs that are incurred in business. One is product costs and other is Period…

Q: Explain Amortised cost and how to calculate it.

A: Amortized cost refers to the cost that helps to allocate the cost of financial/intangible assets…

Q: Accounting Current Cost Measurement Why liabilities, such as Accounts Payable (an obligation) is…

A: Answer:- Financial statements provide a snapshot of a corporation's financial health at a particular…

Q: In accounting, which statement accurately reflects the Historical Cost Accounting concept and its…

A: The concept of historical cost accounting uses the original purchase prices of assets and…