Cost And Management Accountıng Deneme Sınavı Sorusu #1400895
"Actual Costing Method....................." Which of the following best completes the statement above?
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At the start of the year, actual costs are calculated first to make predictions about actual values |
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At the end of the year, standard costs and actual costs are compared to adjust to actual values to be reflected in financial statements. |
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product cost is already known at the beginning of the year without any prior calculation |
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costs of all manufacturing factors are based on the standards that are previously determined using scientific techniques and methods. |
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product cost is calculated at year-end by using the cost data that incurred during the year |
Actual Costing Method
In actual costing method, product cost is calculated at year-end by using the cost data that incurred during the year. In order to calculate the product cost, it is necessary that the production is completed and all related expenditures have incurred. Direct costs (direct material and direct labor) incur in parallel to the production process and they are traced to products, so they can be measured on time. However, for determining the actual manufacturing overhead cost per unit, an allocation is required, and this is possible only at the end of the year, when all
overhead for the year can be measured.
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