ACC 336 Chapter Notes - Chapter 5.1 5.2: General Ledger, Mass Production, Source Document
29 Jun 2020
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Document Summary
Combine direct materials, direct labor, and oh to produce a new product. Produce goods that are tangible and can be inventoried and transported. Service is characterized by its intangible nature. Not separable from the customer and cannot be inventoried. Intangibility: nonphysical nature of services as opposed to products. Heterogeneity: greater variation in the performance of services than in production of products. Perishability: services cannot be inventoried but must be consumed when performed. Services are di cult to standardize, quality to control, bene ts wear o quickly. Used by both unique service and manufacturing rms. Mass produced items that are semi customized ex. Blue cars and red cars instead of black cars. Refers to the recognition and recording of costs. Source document: keeps track of costs as they occur and describes a transaction. Data acquired are recorded in a database. Helps identify if relevant costs are recorded in the general ledger and posted to appropriate accounts.
