The Financial Accounting Standards Board Develops Generally Accepted Accounting Principles

question 91

True/False

The Financial Accounting Standards Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner.

---

Definitions:

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product, directly contributing to its production.

Service Firms

Companies that provide intangible products or services to customers, as opposed to tangible goods.

Job Order Costing

An accounting method that accumulates costs based on individual jobs or orders, suitable for customized products.

Time Ticket

A record that tracks the amount of time an employee spends on various activities or tasks, used for billing clients or allocating labor costs.