For Each Item Listed Below, Indicate Whether It Involves A

question 88

Essay

For each item listed below, indicate whether it involves a:
a.permanent difference.
b.temporary difference that will result in future deductible amounts (giving rise to deferred tax assets).
c.temporary difference that will result in future taxable amounts (giving rise to deferred tax liabilities).

Required:
Match each item to its descriptive phrase by placing the appropriate letter in the space provided.

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Definitions:

Process Costing

A method of costing used where identical products are produced, allocating average costs for each unit.

Repetitive Production

A method of production where the same products are manufactured over and over again in a continuous flow.

Noncustomized Products

Refers to goods that are produced in large quantities without specific modifications for individual customers.

Process Costing Systems

An accounting method used to allocate costs to units of product in processes that mass produce similar items, calculating the cost per unit.