Question
Match the description of the costing systems given with the appropriate costing system name from the drop down list: Regardless of which costing method used,
Match the description of the costing systems given with the appropriate costing system name from the drop down list:
Regardless of which costing method used, AASB102 specifies that all production costs MUST be included within the cost of the product and only expensed when the goods are sold:
Answer 1
Choose...
Actual costing
Absorption costing
Normal costing
Activity based costing
All costs are based on the actual recorded costs and therefore final product or service costing only occurs after the end of the period
Answer 2
Choose...
Actual costing
Absorption costing
Normal costing
Activity based costing
Prime costs are traced however overhead costs are allocated to WIP using a calculated and predetermined rate enabling more stable pricing of products and more certainty for planning purposes:
Answer 3
Choose...
Actual costing
Absorption costing
Normal costing
Activity based costing
When product codes incur many costs which are NOT related to the unit of production and there is diversity in the complexity of the products, large companies may find this costing system gives more accurate costing:
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Managerial Accounting
Authors: James Jiambalvo
7th Edition
1119577721, 978-1119577720
