Consider the following statements regarding product cost information.
i. Product cost information is necessary for planning, cost control and providing information for making decisions.
ii. Product cost information is not necessary to justify rate increases that are subject to the approval of government authorities.
iii. Product cost information is necessary to value inventory on the balance sheet.
Which of the statement/s is/are correct?
A) i, ii and iii
B) i and ii
C) i and iii
D) iii

Question

Quizplus · Accepted Answer

Statement i is correct, as product cost information is important for planning, controlling costs, and making informed decisions. 
Statement ii is incorrect, as product cost information may be necessary to justify rate increases, particularly if the company is able to demonstrate that the increase is necessary due to increased costs of production. 
Statement iii is correct, as product cost information is necessary to properly value inventory on the balance sheet.

Consider the Following Statements Regarding Product Cost Information