When using the moving-average cost formula with a perpetual system, Question 24 options: a new unit cost is calculated each time a sale is made. a new price per unit is calculated each time a sale is made. a weighted-average cost is calculated at year-end. a new unit cost is calculated each time a purchase is made. If a company sells a product
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
When using the moving-average cost formula with a perpetual system,
Question 24 options:
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a new unit cost is calculated each time a sale is made. |
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a new price per unit is calculated each time a sale is made. |
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a weighted-average cost is calculated at year-end. |
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a new unit cost is calculated each time a purchase is made. |
If a company sells a product, and gives the buyer the right to return the product within a specified period, revenue from the sales transaction should be recognized at the time of sale if:
Question 21 options:
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there is a transfer of the risks and rewards of ownership. |
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the market for returnable goods is unknown. |
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the amount of future returns can be reasonably estimated. |
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the amount of goods returned is likely to be high. |
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