COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You are explaining the characteristics of a “profit in inventory” cost element to a client. Which three statements describe true characteristics of this cost element?(Choose three.)
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It can help you understand true margins and value added by internal business units through the internal supply chain.
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It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in the same business unit.
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It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in different business units.
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It can help you with consolidated financial reporting.
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It is only used when you do not need to maintain an arm’s length relationship.
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Explanation:
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