Which of the following statements is true? A. Product costing is not used in fin

Question

Which of the following statements is true? A. Product costing is not used in financial accounting.
B. There is only one way to assign indirect costs.
C. All product cost numbers can be easily derived due to their objective nature.
D. Product costing is limited to manufacturing firms. E. Relative profitability depends upon the way we assign costs and define outputs as successful or unsuccessful. Which of the following statements is true? A. Product costing is not used in financial accounting.
B. There is only one way to assign indirect costs.
C. All product cost numbers can be easily derived due to their objective nature.
D. Product costing is limited to manufacturing firms. E. Relative profitability depends upon the way we assign costs and define outputs as successful or unsuccessful. Which of the following statements is true? A. Product costing is not used in financial accounting.
B. There is only one way to assign indirect costs.
C. All product cost numbers can be easily derived due to their objective nature.
D. Product costing is limited to manufacturing firms. E. Relative profitability depends upon the way we assign costs and define outputs as successful or unsuccessful.

Explanation / Answer

Answer:

Option E is the answer

Option A: product costing is used in financial accounting

Option B: Thers is more than one way like Fixed cost, proportional allocation etc.

Option C: Nope its not the case. overhead numbers becomes tricky to get to know and lot of assumptions goes in to deciding it as well

Option D: Product costing is not limited to manufacturing firms only it is used in other businesses as well like merchandising industry

Option E: True. The method you are using for costing to assign costs can impact the profitability.

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