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schepotkina [342]
3 years ago
8

The controller ▼ is is not correct in his justification with respect to classifying costs as product or period​ costs; this dete

rmination is made by ▼ Generally Accepted Accounting Principles (GAAP) plant controllers . Research and​ development, as well as all costs related to warehousing and distribution of​ goods, should be classified as ▼ period costs, product costs, and be ▼ expensed as incurred reflected as an asset in the balance sheet .
Business
1 answer:
jolli1 [7]3 years ago
4 0

Answer:

Explanation:

Under GAAP, every cost incurred should be classified into either  period cost or product cost, where:

Product Cost:

The cost business has incurred right now, but will benefit from it in future for e.g. raw materials used to manufacture something which will be sold in next period (by the way period means the time span for which business is reporting its performance like year or quarter). these generally include direct labor, materials and manufacturing over heads

these costs should be capitalized and expensed out in future as the inventory is used.

Period Cost:

all other costs from which business has benefited completely in current period, including admin sales and distribution related costs

these should be expensed out in current period.

for warehousing costs, if they pertain to raw materials and semi finished goods they will be capitalized but if they pertains to finished goods they will be expensed out (as there is no benefit expected from them in future now)

for research and development, every research cost should be expensed out for e.g. feasibility studies under GAAP, but if product found to be commercially viable then the development costs can be capitalized as intangible asset(with the same logic as these will be exactly like manufacturing costs for tangible products).          

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Public companies under the jurisdiction of the Securities and Exchange Commission are required by law to hire a certified public
Ostrovityanka [42]

Answer:

A. True

Explanation:

At the time of publishing the financial statements of the public companies under the jurisdiction of the Securities and Exchange Commission (SEC) is compulsory to hire the independent auditor or we can say Chartered Accountant (CA) so that he or she can assess the financial statement prepared by the public company whether it follows the  Generally Accepted Accounting Principles (GAAP) or not.

And, according to that the independent auditor given his or her qualified or unqualified opinion

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Does each Subway $5 Footlong cost the franchisee more than $5? Subway, the fast food restaurant franchise, recently announced it
g100num [7]

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5 0
3 years ago
You can have your cake or chose to eat it
Oksi-84 [34.3K]

Answer:

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4 0
3 years ago
Read 2 more answers
what is a basic premise of the acquisition method regarding accounting for a noncontrolling interest?
miv72 [106K]
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What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
7 0
2 years ago
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Artemon [7]

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

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<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>

4 0
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