Cost Accounting Information Developed for Managers to Use in Making

question 47

True/False

Cost accounting information developed for managers to use in making decisions must comply with generally accepted accounting principles (GAAP).

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative costs, and are expensed in the period they are incurred.

Factory Rent

The cost incurred by a business for leasing a manufacturing facility or space where production activities are carried out.

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.