EBK COST ACCOUNTING
EBK COST ACCOUNTING
15th Edition
ISBN: 9780133812763
Author: Rajan
Publisher: VST
Question
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Chapter 9, Problem 9.19E

1.

To determine

Throughput Costing:

A costing approach that considers only direct material as the cost attributable to inventory is called throughput costing. It is based on the concept that only the raw materials used for production are variable costs and all other costs must be recorded as period costs.

To prepare: The income statement of Company C for January, February and March 2014 under throughput costing.

2.

To determine

To explain: The difference in the operating income as per throughput costing and as per variable and absorption costing.

3.

To determine

To identify: One benefit for Company C to use throughput costing.

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