COST ACCOUNTING
COST MANAGEMENT SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
It helps you analyze under-absorption and over-absorption of expenses that you want to capitalize onto the balance sheet as inventory value.
|
|
|
It is a user-defined entity that represents a grouping of expenses that you want to absorb with resource and overhead rates.
|
|
|
You can define the name of your expense pool, but you cannot define more than one.
|
|
|
It is used only for analyzing gross margins on noninventory sales of services.
|
Detailed explanation-1: -What Are Examples of Expenses? Examples of expenses include rent, utilities, wages, salaries, maintenance, depreciation, insurance, and the cost of goods sold.
Detailed explanation-2: -4) Rent is an expense and to be accounted as an expense.
Detailed explanation-3: -In accounting terms, expense is the operational cost that is paid to earn business revenues. It means the outflow of cash in return for goods or services. Expenses can also be written as the sum of all the operations that usually bring profit.
Detailed explanation-4: -An expense type is a potential expense that you can incur that has been defined during setup. An expense item is the actual expense that was incurred. An expense item is always associated with an expense type during expense entry on an expense report.