Identify the correct statement with respect to manufacturing and merchandising companies in general and how their...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Identify the correct statement with respect to manufacturing and merchandising companies in general and how their accounting systems differ. A. Merchandising companies transform materials into other goods through the use of labor and factory facilities. Manufacturing companies sell goods without changing their basic forms. Manufacturing companies show inventories at the cost they pay to acquire them. Merchandising companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories. B. Manufacturing is the transformation of materials into other goods through the use of labor and factory facilities. Merchandising is the transformation of materials into other goods using outside vendors. Both companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories. C. Manufacturing is the sale of goods purchased at wholesale prices. Merchandising is the production of goods using raw materials purchased at resale prices. Both companies show inventories at the cost they pay to acquire them. D. Manufacturing is the transformation of materials into other goods through the use of labor and factory facilities. Merchandising companies sell goods without changing their basic forms. Merchandising companies show inventories at the cost they pay to acquire them. Manufacturing companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories. Identify the correct statement with respect to manufacturing and merchandising companies in general and how their accounting systems differ. A. Merchandising companies transform materials into other goods through the use of labor and factory facilities. Manufacturing companies sell goods without changing their basic forms. Manufacturing companies show inventories at the cost they pay to acquire them. Merchandising companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories. B. Manufacturing is the transformation of materials into other goods through the use of labor and factory facilities. Merchandising is the transformation of materials into other goods using outside vendors. Both companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories. C. Manufacturing is the sale of goods purchased at wholesale prices. Merchandising is the production of goods using raw materials purchased at resale prices. Both companies show inventories at the cost they pay to acquire them. D. Manufacturing is the transformation of materials into other goods through the use of labor and factory facilities. Merchandising companies sell goods without changing their basic forms. Merchandising companies show inventories at the cost they pay to acquire them. Manufacturing companies classify production costs as either direct material, direct labor, or indirect production costs, and they use the accounting system to determine how much cost of each type should be assigned to product inventories.
Expert Answer:
Answer rating: 100% (QA)
The correct statement is D Manufacturing is the transformation of materials into other goods through ... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
MidWest Amusements is in the process of reviewing 10 proposals for new rides at its theme parks in cities scattered throughout the American heartland. The companys only experienced safety engineer...
-
Explain the difference between data and information.
-
A measured value will have uncertainty (a) Only if it is measured incorrectly. (b) If it is not measured more than once. (c) Always. (d) If the measuring device is inexpensive.
-
Which negotiation strategy has the highest risk (possibility of making the customer angry)? Which strategy do you think has the lowest risk (is most effective with customers)?
-
The following selected transactions were completed during February of the current year: 1. Billed customers for fees earned, $41,730. 2. Purchased supplies on account, $1,800. 3. Received cash from...
-
Leonardo, who is married but files separately, earns $ 8 5 , 0 0 0 of taxable income. He also has $ 1 7 , 0 0 0 in city of Tulsa bonds. His wife, Theresa, earns $ 5 2 , 0 0 0 of taxable income. If...
-
The manager of a trendy downtown caf in Columbus, Ohio, collects weekly data on the number of customers it serves. A portion of the data is shown in the accompanying table. a. Use the simple...
-
Total fixed costs for Pinky & Brain Incorporated are $84,000. Total costs, including both fixed and variable, are $165,000 if 273,000 units are produced. The total variable costs at a level of...
-
A 2 5 . 4 g piece of iron and a 2 4 . 2 g piece of gold at 1 0 0 . 0 degrees celsius were dropped into 6 1 0 . 0 mL of water at 2 7 . 0 degrees Celsius. The molar heat capacities of iron and gold are...
-
What's the partial pressure of carbon dioxide in a container that holds 5 moles of carbon dioxide, 3 moles of nitrogen, and 1 mole of hydrogen and has a total pressure of 1.05 atm?
-
What is the molar solubility ( in terms of mol / L ) of SrF 2 in pure water? Note the Ksp of SrF 2 is 2 . 6 x 1 0 - 1 0 Molar solubility of SrF 2 = 1 . 9 x 1 0 - 3 MMolar solubility of SrF 2 = 8 . 7...
-
Write the net ionic equation for the equilibrium that is established when ammonium iodide is dissolved in water. (Use H3O+ instead of H+. It is not necessary to include states such as (aq) or (!).) +...
-
You measure the amount of carbon-14 (the parent isotope) and nitrogen-14 (the daughter isotope) in a sample of bone and determine that 0.75 half-lives have elapsed for carbon-14. What is the age of...
-
Suppose that you are holding a stock portfolio that has a current market value of $1,000,000 and its beta is 1.25. You expect the general market will go up in the next few months and you try to gain...
-
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
-
What is participative budgeting? Discuss some of its advantages.
-
Refer to the Jeanette Company information in Cornerstone Exercise 16-18. Also, assume that the market price per common share is $8.10. Required: Round answers to two decimal places. 1. Compute the...
-
Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The components purchase price, $0.90,...
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
Describe the various legal risks for nurses.
-
Describe the various roles of advanced practice nurses.
Study smarter with the SolutionInn App