ACCTG 211 Study Guide - Midterm Guide: Indirect Costs, Finished Good, Income Statement
Document Summary
Chapter 2 building blocks of managerial accounting. The value chain: r&d, design, production or purchases, marketing, distribution, customer service. Anything not inventoriable will be a period cost: period costs all other costs incurred during the r&d, design, marketing, distribution, and customer service stages of the value chain (all stages other than production and purchases) Period costs are never part of the inventory account. Period costs are expensed in the period they are incurred! Ask yourself, is this at the factory or working on ways to get to the factory? outside of factory, always period cost! Marketing/advertisement will always be period costs they are their own part of the value chain. Merchandising companies" inventoriable product costs: only come from purchasing inventory from vendors and the cost of transporting the merchandise to the business to be ready to sale, includes: Import duties/tariffs (cid:2159)(cid:2197)(cid:2201)(cid:2202) (cid:2197)(cid:2188) (cid:2163)(cid:2197)(cid:2197)(cid:2186)(cid:2201) (cid:2157)(cid:2204)(cid:2183)(cid:2191)(cid:2194)(cid:2183)(cid:2184)(cid:2194)(cid:2187) (cid:2188)(cid:2197)(cid:2200) (cid:2175)(cid:2183)(cid:2194)(cid:2187) +(cid:2165)(cid:2195)(cid:2198)(cid:2197)(cid:2200)(cid:2202) (cid:2186)(cid:2203)(cid:2202)(cid:2191)(cid:2187)(cid:2201) (cid:2159)(cid:2197)(cid:2201)(cid:2202) (cid:2197)(cid:2188) (cid:2163)(cid:2197)(cid:2197)(cid:2186)(cid:2201) (cid:2175)(cid:2197)(cid:2194)(cid:2186)=(cid:2159)(cid:2197)(cid:2201)(cid:2202) (cid:2197)(cid:2188) (cid:2163)(cid:2197)(cid:2197)(cid:2186)(cid:2201) (cid:2157)(cid:2204)(cid:2183)(cid:2191)(cid:2194)(cid:2183)(cid:2184)(cid:2194)(cid:2187) (cid:2188)(cid:2197)(cid:2200) (cid:2175)(cid:2183)(cid:2194)(cid:2187) (cid:2161)(cid:2196)(cid:2186)(cid:2191)(cid:2196)(cid:2189) (cid:2165)(cid:2196)(cid:2204)(cid:2187)(cid:2196)(cid:2202)(cid:2197)(cid:2200)y.
