Which of the following statements are true? I. Product costs are historical figures and therefore are of little use to the manager.II. A company producing furniture would probably use a job order cost systemIII. Both job order and process costing systems utilize averaging concepts in computing unit costs.

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	I and II only
B	II and III only
C	I and III only
D	All of them

Explanation:

Detailed explanation-1: -Product costs are historical figures and therefore are of little use to managers. All of the raw materials purchased during a period are included in the cost of goods manufactured figure. When raw materials are purchased, the work in process inventory account is debited.

Detailed explanation-2: -Product costs are costs that are incurred to create a product that is intended for sale to customers. Product costs include direct material (DM), direct labor (DL), and manufacturing overhead (MOH).

Detailed explanation-3: -Accumulate: Accumulate information and reports regarding product costs. Assign: Assign tasks based on the information received. Allocate: Allocate tasks further to track costs. Adjust: Report the adjustments that can be made to reduce such costs.

Detailed explanation-4: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product.

There is 1 question to complete.