In Addition to the Balance Sheet, Statement of Net Cost

question 2

Multiple Choice

In addition to the Balance Sheet, Statement of Net Cost and Statement of Changes in Net Position, Federal government reporting standards includes which of the following:

• A) MD&A, audit report & RSI
• B) Audit report, Statement of Budgetary Resources and RSI
• C) MD&A, RSI and audit report
• D) MD&A, audit report, Statement of Budgetary Resources and RSI

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.

Equivalent Unit

An accounting measure used to compute the number of units produced during a reporting period, converting partially completed units into an equivalent number of fully completed units.

Equivalent Units

A concept used in process costing that converts work-in-process inventory to a number of fully finished units.

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, typically for homogeneous products.