M3 Cost Accounting: Part 3

Question 1

Which costing method is not acceptable for external reporting purposes?

Answer 1

Activity-based costing (the rest are)
*uses cause and effect relationships to capitalize costs to inventory

Question 2

What is a hallmark traditional costing?

Answer 2

Volume-based production

Question 3

A cost that bears an observable and known relationship to a quantifiable activity base is what type of cost?

Answer 3

Engineered cost

Question 4

In a joint-production costing question, what do you do with the by product info?

Answer 4

REDUCE the joint production costs by the by product amount (* the selling price per unit) and then proceed with the problem