The first ranked product, in incremental revenue allocation method, is classified as ___________?
Correct answer: A. primary product
- A. primary product
- B. First incremental product
- C. Second incremental product
- D. Third incremental product
Explanation
The product ranked first in the incremental revenue allocation method is the primary product. Products ranked after it are designated as incremental products.
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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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