COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What are three cost method choices that are available in Cost Accounting? (Choose three.)
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Standard cost
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Actual cost (FIFO or First In First Out)
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Periodic average cost
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Actual cost (LIFO or Last In First Out)
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Perpetual average cost
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Explanation:
Detailed explanation-1: -In the perpetual system, “average” means the average cost of the items in inventory as of the date of the sale. This requires calculating a new average cost per unit after every purchase.
Detailed explanation-2: -ADVERTISEMENTS: Read this article to learn about the following eight methods of costing, i.e., (1) Job Costing, (2) Contract Costing, (3) Batch Costing, (4) Process Costing, (5) Operation Costing, (6) Unit Costing, (7) Operating Costing, and (8) Multiple Costing.
Detailed explanation-3: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.
There is 1 question to complete.