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COSTS (ACCOUNTING CYCLE (Retained earnings status. (It includes (The…

- - - - It is the separation of assets and rights that constitute the assets of the company and the equity that form the liability of the company
    - - They should proceed to add the amounts of the preceding year.
      - The accounting criteria can not be changed from one year to the next.
      - The structure of one exercise can not be changed to another.
  - - - Where the accountants carry the extraordinary gains and losses, as well as the corrections to the profits of exercise
    - - The capitalization of reserves, of pending profits to be applied
      - Transfers between surplus cattle
      - The increase to reserves
    - - Return of contributions
      - Absorber dèficit
      - Conversion of share capital to unsecured bonds
  - - - Main Materials
        
        The materials that are actually part of the finished product
      - Auxiliary materials
        
        They become physically part of the product or have secondary importance
    - - Types of processed products
      - Types of processed products.
      - Cost system employed.
      - Replacement policy.
      - Forms of storage
  - - - Monetary correction.
        
        Adding when the balance is credit and subtracting when the balance is debit
      - Sales cost.
        
        When the permanent inventory system is obtained with the balance of the cost of sales account
      - Classification of financial statements.
        
        The balance sheet.
        
        The income statement.
        
        The statement of changes in equity.
      - Non-operating expenses .
        
        It includes occasional expenses that do not correspond to the main object of the business.
      - Operational expenses
        
        Performed in order to produce the main incomes
- - - - What is it
        
        It is the raw material, labor and manufacturing overhead taking the last two variables and fixed
    - - Is assigned
        
        A manufactured producers
        
        What is its main distinction of low cost is the one that exists between fixed and variable costs
    - - It is characterized by the following aspects
        
        Delegation of authority
        
        Cost standards
        
        Delineation of centers of responsibility
        
        Determination of controllable costs
    - - Meaning
        
        It is a list that contains the accounts that are necessary to record the accounting facts
        
        It serves
        
        As a means of obtaining information
        
        To use the same account against the facts
        
        As a basic structure in the organization
        
        Facilitates the preparation of the financial statements