Managerial Accounting, v1.0: "Chapter 1, Section 7: How Product Costs Flow through Accounts"

Costs are associated with, and accumulated in, broad accounts out of necessity. In this section you will learn how costs are assigned to those accounts and how those costs can "flow" through another cost account. For example, inventory costs will become costs of goods sold, and work in progress (WIP) cost will become inventory costs. Be sure to complete the exercises at the end of this section before you move on.