Which of These Is Not One of the Methods Used

question 59

Multiple Choice

Which of these is not one of the methods used to assign costs between cost of sales and closing inventory?

• A) Specific identification
• B) First-in first-out
• C) Lower of cost and net realisable value
• D) Weighted average

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Definitions:

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of a product, reflecting only those costs that directly change with the level of production.

Production

Production involves the processes and methods used to transform raw materials or components into finished goods or services.

Units

A measurement of quantity for inventory, production, or financial calculation, indicating single items or entities.

Variable Cost

Expenditures that alter in correlation with production or service output levels.