A Major Disadvantage to the Cost Method of Accounting Is

question 98

Multiple Choice

A major disadvantage to the cost method of accounting is that ________.

• A) markdowns, markups, and employee discounts must be constantly computed
• B) costs must be assigned to each item in stock and to each item sold
• C) the cost of goods sold is not based upon actual delivery costs
• D) the cost complement may not accurately reflect true costs

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Definitions:

Exponentiation

An operation in mathematics that uses two values, the base and the exponent, with the base being repeatedly multiplied by itself a number of times equal to the exponent.

Exponentiation

A mathematical operation, written as a^b, involving two numbers, the base (a) and the exponent (b), where the base is multiplied by itself the exponent number of times.

Division

The process of assigning or distributing something into separate parts or groups.

Equation Complexity

A measure of the difficulty or intricacy of a mathematical equation, often based on the number of operations or variables involved.