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The material costs associated with a proposed program, how these are recorded and how they affect the account of the business are discussed. The material cost is a major component of most businesses.
CMA MATERIAL PART 2 Final Exam Answers
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It is a very important management accounting issue. It is possible to construct a statement of profit or loss with only the total sales
accounts. However, as a simple example, and under some circumstances, you might be required to record labor cost as a separate line item in the
income statement. In the examples below, expenses are recorded as a separate line item and income is recorded as a separate line item in the
accounts.
On one hand, you can record labor cost in two different ways. If it is not recorded as an expense, it should be recorded as a separate
line item. However, if it is recorded as an expense, it is a waste of the company’s money, as it is just recorded as a payment that the
employees make.
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CMA MATERIAL PART 3 Final Exam Answers
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