Assuming That Ace Systems Uses the LIFO Flow Assump?tion, the 12

question 24

Multiple Choice

Assuming that Ace Systems uses the LIFO flow assump?tion, the 12 units of this product in inventory at January 31 have a total cost of:

• A) $499.
• B) $331.
• C) $509.
• D) Some other amount.

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Definitions:

Direct Labor-hour

A measure of the amount of time spent by workers directly involved in the production process to manufacture a product.

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.