Knowledge quiz

It’s time to put what you’ve learned to the test, get 2 questions right to pass this unit.

There are two correct answers.

Product Cost by Period requires the use of separate cost objects for different production types within the same plant.

The main focus of Product Cost by Period is analyzing costs by production lot size.

Product Cost by Period scenarios can include calculating and analyzing variances for each period.

The PCC in Product Cost by Period is debited with actual costs and credited when finished materials are received into inventory.

There are two correct answers.

Product Cost by Order is suitable for repetitive manufacturing environments where production is ongoing without distinct lot sizes.

In a repetitive manufacturing environment, Product Cost by Period is always used for cost analysis.

In Product Cost by Period, the WIP is calculated based on actual costs rather than target costs.

Product Cost Collectors in Product Cost by Period are valid over an extended period, potentially overlapping multiple fiscal years.