Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?
A. Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
B. Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
C. Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion
D. Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period
Answer: Option A
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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