COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It involves the determination of company profits.
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It involves measuring product costs.
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It requires GAAP to be applied.
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It requires cost minimizing principles.
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Detailed explanation-1: -Which of the following is true of cost accounting? It is part of both management and financial accounting systems.
Detailed explanation-2: -Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.
Detailed explanation-3: -(a) Cost accounting involves the measuring, recording, and reporting of product costs, not (b) future costs, (c) manufacturing processes, or (d) managerial accounting decisions. system if: (a)it manufactures a large volume of similar products.
Detailed explanation-4: -The correct answer is c. They are first recorded in an inventory account. Product costs are costs to be recorded as part of inventory: Raw materials inventory if the materials were not yet used in the production.