For Each of the Following, Identify in Column 1 the Category

question 98

Essay

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
- $$\begin{array} { | l | l | l | l | l | } \hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\\hline \text { Prepaid } & & & & \\\text { Insurance } & & & & \\ \text { Expense } & & & & \\\hline\end{array}$$

Differentiating between importing and exporting countries based on domestic and world prices.

Recognizing the benefits of international trade.

Understanding arguments for and against trade restrictions.

Comparing and contrasting import quotas and tariffs.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs as product costs, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a finished product.

Variable Costing

An economic recording tactic that involves only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in determining product costs.