What are the three major categories of inventoriable costs


Discussion Post

Introductory discussion questions

These questions are intended to form the basis for class discussion. They are designed to encourage you to use the recommended reading and your general knowledge to think about accounting in its social, economic, and political context. There are no 'right' answers; in many cases your opinion, backed up by reasoned arguments, is likely to be as good as anything you read in a textbook. You should prepare answers as complete as possible and you will be expected to discuss them in class.

A. Explain the principal distinctions between ?nancial accounting and management accounting.

B. Why do practitioners argue that the dividing line between management accounting and financial reporting is becoming increasingly blurred?

C. What are cost objects? Give three examples.

D. What are the three major categories of the inventoriable costs of a manufactured product?

E. What are sunk costs and opportunity costs? Give an example of each and explain how they matter for decision purposes.

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