A More Structured Format That Is Similar to a T-Account

question 242

Short Answer

A more structured format that is similar to a T-account in that it has columns for debits and credits, but that is different in that it has columns for transaction date, explanation, and the account balance is the ________.

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Definitions:

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Inventory

Materials and goods held by a business in the process of being sold or used in production processes.

Cost

The amount of money that needs to be spent to acquire, produce, complete, or maintain something.