ECONOMICS

COST ACCOUNTING

COST MANAGEMENT SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Your client uses actual costing and needs to cost to the subinventory level. They have a few subinventories that hold normal goods and one subinventory that holds returned goods. They want their normal goods subinventories to be costed differently from their returned goods subinventory. Which cost policy supports this requirement?
A
Create a separate cost book for the normal goods subinventories and one cost book for the returned goods subinventory Add both cost books to the same cost organization.
B
Create a separate cost organization for the normal goods subinventories and one cost organization for the returned goods subinventory.
C
Manually create one cost profile for the normal goods subinventories and one cost profile for the returned goods subinventory.
D
Manually create one valuation unit for the normal goods subinventories and one valuation unit for the returned goods subinventory.
E
Make the inventory organization that holds the subinventories to be costed to the subinventory level by changing the organization parameter field from “Costing Level” to “Subinventory.”
Explanation: 
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