To Determine the Cost of a Product,which of the Following

question 118

Multiple Choice

To determine the cost of a product,which of the following are followed?

• A) first step, cost assignment and second step, cost allocation
• B) first step, cost accumulation and second step, cost assignment
• C) first step, cost allocation and second step, cost apportionment
• D) first step, cost absorption and second step, cost attribution

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Definitions:

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit, typically due within a short period of time.

Equivalent Annual Cost

A cost calculation method that is used to compare the cost effectiveness of different investments or projects with different lifespans.

Tax Shield

A deduction allowed by the tax laws to reduce taxable income, thus lowering the overall taxes owed by an individual or an organization.

Mutually Exclusive

Two events that cannot happen at the same time, requiring a choice to be made between them.