A Manufactured Item Has Three Cost Elements

question 1

Essay

A manufactured item has three cost elements.State what they are and briefly explain the nature of each.

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Definitions:

Reversing Entries

Entries recorded at the start of a new accounting cycle to negate or reverse adjustments that were documented at the conclusion of the preceding period.

Payment

The act of transferring money or value from one party to another as a form of settlement for goods, services, or obligations.

Unearned Fees

Revenue received by a company for services yet to be performed, recognized as a liability until the services are provided.

Fees Earned

Income received for services provided by a company or individual.