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When a Company Is Looking to Raise Money Through Issuing

question 103

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When a company is looking to raise money through issuing more shares of stock, that is considered in the secondary market.


Definitions:

Cost Accounting Systems

Systems that measure, record, and report product costs.

Product Costs

The expenses directly associated with creating a product, including materials, labor, and manufacturing overhead.

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

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