Full Costs Are Calculated in Advance to Assist Management In

question 2

Multiple Choice

Full costs are calculated in advance to assist management in:

• A)determining profit during the year.
• B)setting prices.
• C)saving time at the end of the year.
• D)Both A and B.

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Definitions:

Adjusting Entry

An accounting record made to update the balance of accounts at the end of an accounting period to reflect the true financial position.

Expired Insurance

Refers to insurance policies where the coverage period has ended and has not been renewed or extended.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.