Describe the Three Basic Fund Types and Account Groups and Explain

question 45

Essay

Describe the three basic fund types and account groups and explain what changes, if any, the adoption of GASB standard #34 has made on these classifications?

---

Definitions:

Weighted Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Direct Labor

Direct labor refers to the work of employees directly involved in the production of goods or services, often considered variable costs.

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.

Production Period

The Production Period is the phase in a manufacturing process when resources are used to convert raw materials into finished products.