Which of the Following Is an Inventory Costing Method

question 53

Multiple Choice

Which of the following is an inventory costing method?

• A)Periodic
• B)Specific identification
• C)Perpetual
• D)Lower of cost or market

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Definitions:

Total Manufacturing Cost

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in producing products.

Machine-Hours

A measure of production time, referring to the number of hours a machine is operated in the manufacturing process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs and activity levels.

Manufacturing Departments

The sections of a manufacturing organization dedicated to specific production activities or processes.