Identify and State the Historical Significance of the Following

question 112

Short Answer

Identify and state the historical significance of the following:
-Andrew Mellon

Identify and differentiate between operating and non-operating items, including unusual and discontinued operations.

Understand how changes in accounting principles and methods are reported.

Grasp the concepts and calculations related to earnings per share and dividend yield.

Understand the purposes of different types of financial analysis (e.g., leverage, profitability).

---

Definitions:

Variable Production Costs

Costs that change in proportion to the level of production activity, such as raw materials and direct labor.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed overhead as a period expense.

Absorption Costing

A cost calculation method in accounting that adds all expenses related to manufacturing—direct materials, direct labor, and both fixed and variable overhead—into the final cost of a product.

Directly Traced

Refers to costs or expenses that can be directly linked to a specific product, service, or department.