COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Duty is a seeded charge name for Landed Cost.
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You can modify a charge name until it is associated with a trade operation.
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Charge names cannot be used to tie an invoice to a trade operation.
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You can use multiple currencies within a trade operation for the same charge name on different lines.
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Charge names cannot be associated with a PO schedule.
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Detailed explanation-1: -Landed cost includes the per-unit cost of a product, freight, taxes, import and export duties, insurance, payment processing and handling fees, exchange rates and storage fees. These costs will vary from one country to another or be based on the time of year, how much is being shipped and other factors.
Detailed explanation-2: -Freight on board (FOB) is the price a retailer pays their supplier to acquire goods for them. It includes things like export packaging, documentation, and delivery. The only costs not generally included in FOB are shipping and import fees. Landed cost includes any expenses associated with shipping a product.
Detailed explanation-3: -The Standard Cost Components are broken up into Material, Labor, Overhead, etc. With the Landed Cost program, Freight and Other Landed Costs will be included as additional cost components used to calculate the Standard Cost of an item.