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costing methods

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › costing methods

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 29, 2022 at 3:26 pm #652233
    noitiut
    Participant
    • Topics: 15
    • Replies: 7
    • ☆

    Which costing method would be applied on a production line where runs of different
    canned food products are interchanged at regular intervals?
    1. Joint product costing
    2. Batch costing
    3. Process costing
    4. Job costing

    March 29, 2022 at 4:08 pm #652239
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    There is no point in simply typing out a test question and expecting to be provided with an answer.

    You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.

    March 29, 2022 at 6:33 pm #652256
    noitiut
    Participant
    • Topics: 15
    • Replies: 7
    • ☆

    Sorry Sir. I found this question on a document which I came across on a group on telegram. There are no answers given in that document.

    My answer would be process costing because I think the canned foods need to go through different stages such as fermentation, etc. but I also think its batch costing since the question says different canned foods are interchanged at regular intervals, they must set up the machines differently each time so its probably being produced in batches. I’m confused between these two.

    March 30, 2022 at 7:35 am #652298
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are right in that it could be either process costing or batch costing (depending on how often the products are interchanged).

    You should not be attempting questions found in this way. You should be using a Revision Kit from one of the ACCA Approved Publishers. They are typical of questions that can actually be asked in the exam (and they have answers and explanations).

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