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

---

Definitions:

Market-to-Book Ratio

A financial ratio that compares a company's market value to its book value, indicating how investors value the company compared to its actual worth.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to determine if the stock is over or under-valued.

Book Value Per Share

The shareholder equity available per outstanding share of a company, calculated by dividing total equity by the number of shares outstanding.

Statement of Comprehensive Income

A financial report that includes not only net income, but also other forms of comprehensive income such as unrealized gains or losses on investments.