When preparing an income statement based on marginal costing principles, inventory valuation comprises which of the following costs? O a. Direct labour and material only Ob. Oc. Total cost of sales O d. Prime cost plus variable overhead Prime cost plus production overheads 27

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 17GI
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When preparing an income statement based on marginal costing principles, inventory
valuation comprises which of the following costs?
O a. Direct labour and material only
Ob. Prime cost plus production overheads
Oc. Total cost of sales
Od. Prime cost plus variable overhead
27
Transcribed Image Text:When preparing an income statement based on marginal costing principles, inventory valuation comprises which of the following costs? O a. Direct labour and material only Ob. Prime cost plus production overheads Oc. Total cost of sales Od. Prime cost plus variable overhead 27
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