Explain Debits and Credits and Their Role in the Accounting

question 98

Essay

Explain debits and credits and their role in the accounting system of a business.

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Definitions:

Cost of Goods

The total direct costs attributable to the production of goods sold by a company.

Manufactured

The process of making products from raw materials through various procedures including cutting, shaping, assembling, and finishing.

Schedule of Cost

A detailed report summarizing the types and amounts of costs incurred by a company.

Goods Manufactured

Items that have been completed through the manufacturing process and are ready for sale.