In manufacturing companies, the variable and absorption costing are methods, which are used in __________?
Correct answer: D. costing of inventories
- A. recording of liabilities
- B. costing of current assets
- C. costing of machinery
- D. costing of inventories
Explanation
Variable and absorption costing determine which manufacturing costs are included in the cost of inventory. They are therefore methods for costing inventories, not liabilities or machinery.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the production is greater than sales, then operating income under variable costing is _________?
Under absorption costing, the fixed cost of manufacturing is deferred to some ___________?
In variable costing, the change in operating income is driven only by changes in _________?
If the selling price is $2500, variable manufacturing cost per unit is $1000 and variable marketing cost per unit is $500, then contribution margin per unit will be ___________?
If the per unit budget per unit cost is $200 and budgeted production units are 350, then fixed budgeted manufacturing costs will be __________?
If the contribution margin per unit is $12300 and the change in sold quantity of units is 50, then change in variable costing operating income will be __________?