Which of the Following Would Be Internal Users of Accounting

question 113

Multiple Choice

Which of the following would be internal users of accounting information?

• A)Customers and vendors
• B)Employees and managers
• C)Government and banks
• D)Employees and customers

Calculate cost of goods sold and understand its relation to ending and beginning inventory.

Appreciate the importance of adhering to principles such as full disclosure and consistency in inventory accounting.

Apply the concept of the lower of cost or net realizable value (NRV) in inventory valuation.

Understand the operational and financial considerations in selecting inventory systems (perpetual or periodic) and costing methods.

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Definitions:

Direct Labor

Costs associated with the labor directly involved in the production of goods or services.

Job Cost Sheets

Detailed records used in cost accounting to accumulate all costs associated with a specific job or project.

Work In Process

Inventory items that are in the process of being produced but are not yet complete.

Subsidiary Ledger

A detailed ledger containing individual accounts with a common characteristic, linked to a summary account in the general ledger.