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Commerce · Q688

Costing

Graduate and Post Graduate · Commerce · question 688

Q688

Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as

A.
weighted average method
Answer
B.
net present value method
C.
Gross production method
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as weighted average method. The Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS.