ACCT 1A Lecture Notes - Lecture 29: Financial Statement, Cost Accounting
14 Sep 2020
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Document Summary
Gaap require companies to disclose what their significant policies are and any changes in them since the previous period. Idea is to help users understand and interpret the figures and notes in the statement. Summary of the significant policies usually appear as the first of the notes. Making accounting policy decisions are an inevitable consequence of accrual accounting. They are part of the judgemental fabric that is at the heart of accrual accounting and properly made, add value to the financial statements. Management is in the best position to make valid accounting policy choices as management knows the company the best. In the company overview section, management reviews the year"s performance and takes responsibility for it: they thus determine how management"s performance is measured. M3. 3 two issues: cost measurement and cost assignment. Unit cost total manufacturing cost associated with the units produced divided by no. of units produced.
