Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as
A. indirect method
B. direct method
C. step down method
D. reciprocal method
Answer: Option D
A. indirect method
B. direct method
C. step down method
D. reciprocal method
Answer: Option D
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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