ACCO 20073 Cost Accounting and Control
First Semester, AY 2020-2021
Statement I. In a just-in-time (JIT) system, inventories are near zero.
Statement II. Backflush accounting is applicable for JIT systems only.
Both statements are true.
Both statements are false.
Statement I is true; Statement II is false.
Statement I is false; Statement II is true.
Statement I. As to relevant cost of inventories, JIT system will cause carrying costs to increase
Statement II. The concept of EOQ is of no use when a company implements a JIT system.
Statement I. In a normal costing system, the prime costs are applied to production at actual
Statement II. Actual costing system is rarely implemented in practice as it may result to delays
and significant fluctuations in inventory costing.
When the overapplied overhead is material, the entry to close this would involve:
Which method of
service department cost allocation involves a “benefits ranking” approach?
None of these
Rework costs associated with defective units caused by a manufacturing glitch and are inherent
in the process shall be