The costing method, which calculates per equivalent unit cost of all the production related work done, till calculated date is termed as __________?

Correct answer: A. weighted average method

  • A. weighted average method
  • B. net present value method
  • C. Gross production method
  • D. net present value method

Explanation

The weighted-average method combines beginning work-in-process costs with current-period costs and divides them by equivalent units produced to date. Net present value is an investment appraisal technique, not a process-costing method.

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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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