Imagine That You Have Developed a Software Application and Want

question 75

Essay

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

Understand the components and structure of the Cost of Goods Manufactured (COGM) statement.

Identify the different types of inventories in manufacturing and their roles in cost accounting.

Calculate total manufacturing costs, including direct materials, direct labor, and manufacturing overhead.

Distinguish between raw materials, work-in-process, and finished goods inventory.

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Definitions:

Terms of Sale

The conditions under which a seller is willing to sell a product or service, including price, payment method, and delivery time.

Prompt Payment Discount

A reduction in the amount due on a bill offered by a seller to encourage early payment by the buyer.

Operating Cycle

The total time it takes for a company to purchase inventory, sell the products, and collect the cash from the sales.

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.