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Fixed costs treated as a period cost

Absorption costing
B. Marginal costing

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Easier for managers to understand

Absorption costing
B. Marginal costing

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Shows the lowest price at which a product can be sold in the long term

Absorption costing
B. Marginal costing

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Pear Co manufactures a product that passes through one process, Process P. During the month of July, the following related to Process P.All losses have a scrap value of $1.25.What is the full cost value of the normal losses credited to Process P for July?

A. $500
B. $750
C. $1,000
D. $600

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Which TWO of the following statements about joint products are TRUE?

A. It is a product that is produced in collaboration with another organisation
B. It is a product that requires input from two or more processes
C. It is when two or more products of significant value that are produced simultaneously
D. They are products that will only become separately identifiable following a split-off point

查看答案

Fixed costs treated as a period cost

Absorption costing B. Marginal costing

Easier for managers to understand

Shows the lowest price at which a product can be sold in the long term

Pear Co manufactures a product that passes through one process, Process P. During the month of July, the following related to Process P.All losses have a scrap value of $1.25.What is the full cost value of the normal losses credited to Process P for July?

Which TWO of the following statements about joint products are TRUE?

Absorption costing
B. Marginal costing