Product Costing Provides Useful Cost Information for the Following Except

question 59

Multiple Choice

Product costing provides useful cost information for the following except:

• A)Both manufacturing and non-manufacturing firms.
• B)Product and service cost determination and inventory measurement.
• C)Management planning,cost control,and performance evaluation.
• D)Financial reporting.
• E)Developing an ethical climate within the organization.

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Definitions:

CM Ratio

The contribution margin ratio, representing the portion of sales that contributes to covering fixed costs after variable costs have been paid.

Segmented Income Statements

Financial reports that break down revenues, costs, and profits by business segment, product line, geographical area, or other categories.

Break-Even Calculations

The process of determining the point at which revenues equal expenses, indicating that no net loss or gain has been realized.

Common Fixed Expenses

Overhead costs that do not vary with the level of production or sales, shared by multiple business units or products.