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March 29, 2024, 04:19:42 pm

Author Topic: Quick Question  (Read 455 times)  Share 

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_avO

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Quick Question
« on: July 16, 2010, 01:09:58 pm »
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Do you always have to use product costing, if it is logical to individually allocate each item of stock with the preparation expense? Or can it be your own choice? (unless stated in the question, that is)

I would think that product costing is the one you should always stick to, since it is more relevant. Not sure I need some clarification please :D
TIA
2011-2014: Bachelor of Commerce/Economics @ Monash Clayton

Yitzi_K

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Re: Quick Question
« Reply #1 on: July 16, 2010, 03:28:07 pm »
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I would assume so, although I imagine any exam question would be specific about which to use.
2009: Legal Studies [41]
2010: English [45], Maths Methods [47], Economics [45], Specialist Maths [41], Accounting [48]

2010 ATAR: 99.60

Aqualim

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Re: Quick Question
« Reply #2 on: July 16, 2010, 04:55:06 pm »
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Product Costing is preferred over Period Costing. So you should always try and use Product Costing unless it;
1) is not logical to do so
2) states to use period costing

_avO

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Re: Quick Question
« Reply #3 on: July 16, 2010, 10:24:25 pm »
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Okay thanks for clarifying guys
2011-2014: Bachelor of Commerce/Economics @ Monash Clayton