Wednesday, September 2, 2009

Hilarious fun fact!

I just read this in my accounting book and couldn't wait to share it with y'all ...

"The direct material, direct labor and manufacturing overhead costs incurred to produce products for sale are product costs, which represent assets transformed from one form to another, as the manufacturing process converts these assets into finished goods. The cost of completed products remains on the balance sheet as Finished Goods assets until the firm sells the products; upon sale, the cost of the assets becomes a cost of goods sold expense."

ROFL! Really, all of Financial Accounting: An Introduction to Concepts, Methods, and Uses by Stickney, Weil, Schipper and Francis is a freakin' hoot.

No comments:

Post a Comment