Which Method of Costing Is Used to Record All Manufacturing

question 83

Multiple Choice

Which method of costing is used to record all manufacturing costs directly in Cost of Goods Sold,and if any inventories occur at the end of the accounting period,the appropriate costs are transferred back to the inventory accounts?

• A)Put-back costing
• B)Traditional costing
• C)Reverse costing
• D)Backflush costing

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Definitions:

Financial Leverage

The use of borrowed funds to increase the potential return on investment, often measured by the ratio of a company’s debt to equity.

Financial Leverage

Financial leverage refers to the use of borrowed funds to increase the potential return of an investment, amplifying both potential gains and losses.

ROE

Return on Equity, a financial ratio that measures the profitability of a firm relative to shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings Per Share; a key financial metric that divides a company's profit by the outstanding shares of its common stock.