What Items Should Be Treated as Extraordinary Items for a Canadian

question 30

Multiple Choice

What items should be treated as extraordinary items for a Canadian company that sells its goods to the US market?

• A)loss of revenues caused by the Bank of Canada as it raises the bank rate
• B)loss of revenues caused by the US government as it imposes extra duties on the company's goods
• C)loss of revenues caused by the increased delays on the Canada-US border that occur due to new security measures
• D)loss of revenues caused by the changes in demand for the company's goods in the US
• E)loss of revenues caused by the longer haul of goods that occurs as a result of heavy snow on the roads

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Definitions:

Weighted-Average Method

An inventory costing method where costs for inventory items are averaged over the period to calculate the cost of ending inventory and cost of goods sold.

Costs Per Equivalent Unit

The calculation used in the process costing system to allocate costs evenly among all units of production, considering both completed and partially completed units.

Assembly Department

A division within a manufacturing facility where components are put together to create a finished product.

FIFO Method

A process costing method that calculates unit costs based solely on the costs and outputs from the current period.xa0