Question
OneStopPlus ships its products in packages whose contents vary by customer order. The companys tracking system does not break down the contents of each package.
OneStopPlus ships its products in packages whose contents vary by customer order. The companys tracking system does not break down the contents of each package. The shipping cost also varies according to the mode of shipping and distance shipped. Last quarter, the company incurred $350,000 in total shipping cost. The statement that best describes the treatment of this shipping cost is
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A : it will be included in product cost under both GAAP-based and activity-based costing.
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B : it will be excluded from product cost under GAAP-based costing but included under activity-based costing.
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C : it will be excluded from product cost under both GAAP-based and activity-based costing.
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D : it will be included in product cost under GAAP-based costing but excluded under activity-based costing.
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Auditing And Assurance Services
Authors: David Ricchiute
7th Edition
0324117760, 978-0324117769
