Total Cost Accounted for Is the Sum of the Cost

question 87

True/False

Total cost accounted for is the sum of the cost of the units transferred out of the department plus the cost of the ending Work in Process inventory.

---

Definitions:

Borrowed

Describes money that has been taken from another party with the agreement that it will be repaid, typically with interest.

Daily Interest

Interest calculation method where the interest is accrued daily.

Savings Account

A bank account where money is kept so that it can earn interest over time, typically used for holding funds that are not needed for daily expenses.

Annual Simple Interest

Interest calculated once a year on the principal sum, without compounding.