Under Generally Accepted Accounting Principles (GAAP),only ________ Costs Can Be

question 36

Multiple Choice

Under Generally Accepted Accounting Principles (GAAP) ,only ________ costs can be assigned to inventories in the financial statements.

• A)period
• B)direct
• C)indirect
• D)variable
• E)manufacturing

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Definitions:

Unit Cost

The cost assigned to a single unit of product, calculated by dividing the total cost by the number of units produced.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, and machinery.

Financial Accounting

The field of accounting that provides economic and financial information for investors, creditors, and other external users.

Raw Materials

Basic materials that are used in the production of goods, which have not yet been processed or manufactured.