COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consigned items cannot appear on inventory reports with information about the eventual value of the consigned item.
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Consigned items can appear on inventory reports with information about the eventual value of the consigned item
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The liability for a consigned item occurs when there is an ownership event.
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A consumption can automatically trigger a momentary ownership transaction before the consumption transaction.
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The quantity is tracked in inventory but not as an asset until there is an ownership event
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Detailed explanation-1: -Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.
Detailed explanation-2: -The four main inventory valuation methods are FIFO or First-In, First-Out; LIFO or Last-In, First-Out; Specific Identification; and Weighted Average Cost.
Detailed explanation-3: -Characteristic Features of Cost Accounting It is a branch of accounting involving the cost of goods and services. Management is able to analyze the data which helps in decision-making and budgeting for the future. The data achieved is used in financial accounting.
Detailed explanation-4: -The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser.