ACC 102 Chapter 18 Homework due 8-31-10

ACC 102 Chapter 18 Homework due 8-31-10 - ACC 102 01L...

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ACC 102 – 01L Homework (Pages 782 – 783, Q 1, 7, 8, 11, 13-18) Q1) Financial accounting involves the preparation of financial statements used by external parties; whereas, managerial accounting prepares information used by managers who are running the business. Q7) Direct costs can be traced to the product; whereas, indirect costs cannot be traced to the product or are not worth the effort to trace. Ex: Direct costs – plastic to make the pen casing Indirect costs – the electricity required to run machinery to produce the pen Q8) a) manufacturing overhead costs – rent, utilities, insurance and supervision at the manufacturing facility. b) distribution or marketing costs Q11) a) Variable costs change in direct proportion to the changes in activity levels; whereas, fixed costs stay the same regardless of activity level. b) variable – gas costs fixed – insurance Q13) Service Companies – provide services to other businesses or consumers. Merchandising Companies
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ACC 102 Chapter 18 Homework due 8-31-10 - ACC 102 01L...

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