A(n) _____ Describes How Things Should Be Done

question 53

Short Answer

 A(n) _____ describes how things should be done.

Perform comprehensive analysis to prepare financial statements including income statement and balance sheet related to manufacturing accounts.

Compute sales revenue and expenses impacting net income.

Analyze changes in inventory accounts and their effects on cost of goods sold and manufactured.

Grasp the relationship between direct materials, work in process, and finished goods inventories in the accounting cycle.

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Definitions:

Standard Hours Per Unit

The estimated time required to produce one unit of a product under standard operating conditions.

Actual Output

The real quantity of goods or services produced by a company, as opposed to estimated or planned production levels.

Standard Cost System

An accounting system that uses predetermined costs for products or services to facilitate variance analysis and budgeting.

Direct Labour Hours

Total hours accumulated by workers directly involved in the fabrication process.