[amp_mcq option1=”priced costing” option2=”actual costing” option3=”direct costing” option4=”indirect costing” correct=”option3″]<\/p>\n
The correct answer is C. direct costing.<\/p>\n
Direct costing is a costing method that only includes direct costs in the cost of goods sold. Direct costs are those that can be easily traced to a specific product or service, such as direct materials and direct labor. Indirect costs, on the other hand, are those that cannot be easily traced to a specific product or service, such as manufacturing overhead and selling and administrative expenses.<\/p>\n
In direct costing, actual direct rates are multiplied to quantity of direct cost inputs. This means that the cost of goods sold is calculated by multiplying the actual direct cost rate by the actual quantity of direct costs incurred.<\/p>\n
Priced costing is a costing method that uses predetermined prices to estimate the cost of goods sold. Predetermined prices are based on historical data and expected costs.<\/p>\n
Actual costing is a costing method that uses actual costs to estimate the cost of goods sold. Actual costs are based on the actual costs incurred during the period.<\/p>\n
Indirect costing is a costing method that includes both direct and indirect costs in the cost of goods sold. Indirect costs are those that cannot be easily traced to a specific product or service.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”priced costing” option2=”actual costing” option3=”direct costing” option4=”indirect costing” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-54175","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n