Which of the Following Is Not a Topic That Is

question 23

Multiple Choice

Which of the following is not a topic that is likely to be discussed as a significant accounting policy?

• A)Depreciation method.
• B)Earnings per share of common stock calculation details.
• C)Inventory valuation method.
• D)Method of estimating uncollectible accounts receivable.

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Definitions:

Prime Cost

The combined cost of raw materials and labor directly involved in the production of goods.

Product Costs

The costs directly incurred from the manufacturing of products including materials, labor, and overhead.

Financial Reporting

The process of disclosing financial information and statements to management, investors, and the public to portray a company's financial performance and position.

Conversion Cost

The combination of direct labor and manufacturing overhead costs incurred to transform materials into finished goods.