The aspects of accounting for scrap includes __________?
Correct answer: D. both a and c
- A. physical tracking
- B. non-inventoriable costing
- C. inventory costing
- D. both a and c
Explanation
Scrap accounting covers both physical tracking of scrap units and inventory costing, which determines the financial effect of scrap. Therefore, both listed aspects apply.
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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.
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