ACCT 2101 Lecture Notes - Lecture 1: Organizational Chart, Finished Good, Internal Control
Document Summary
Provides economic and information for management to make decisions. Used for internal users, the reports are made specificly and as needed. External users, has quarterly and annual reports that are all general. Must follow gaap rules, and are audited. Organizational structure shows the interrelationships of activities and the delegation of authority and responsibility within the company. Manufacturing costs converting raw materials into finished goods: raw materials : direct materials costs that can be physically and directly traced to the end unit of product. Indirect materials may not physically become a part of the product or the amount is too small to trace to the end unit. Labor : direct labor costs of person who physically touches or touches through a machine the unit of product while it is being produced. Indirect labor workers that have no physical association with the end product or their contribution is too small to trace to each unit of product.
