Chapter 2 Lecture Flashcards
1
Q
all costs capitalized into inventory and thus COGS when the product is sold.
A
inventoriable costs
2
Q
manufacturing companies, all manufacturing costs are considered invetoriable costs. such as
A
- direct materials
- direct labor
- indirect manufacturing
3
Q
are all costs in teh income statements other than cost of goods sold.
they are treated as expenses of the accounting period in which they are incurred
A
period costs
4
Q
types of inventory
A
- direct materials
- work in process
- finished goods
5
Q
resources in stock and available for use
A
direct materials
6
Q
goods partially worked on but not yet completed
A
work in process
7
Q
finished goods
A
goods completed but not yet sold
8
Q
A
9
Q
Different types of firms
A
- manufacturing
- merchandising
- service
10
Q
A
