Costing - Study Mode

[#246] Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as
Correct Answer

(A) weighted average method

Explanation

Solution: Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as weighted average method. The Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS.

[#247] Second step in processing costing system is to
Correct Answer

(D) compute output in units

Explanation

Solution: Second step in processing costing system is to compute output in units. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process.

[#248] Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as
Correct Answer

(B) operation

Explanation

Solution: Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as operation.

[#249] An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate
Correct Answer

(B) annual relevant carrying costs

Explanation

Solution: An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate annual relevant carrying costs. Carrying costs are the costs of holding inventory and include maintenance, specifically in regard to perishable items, and storage costs.

[#250] A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as
Correct Answer

(B) materials requirement planning

Explanation

Solution: A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as materials requirement planning. Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product.