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

Both statements (i) and (iii) are true. Product cost information is necessary for planning, cost control and providing information for making decisions as well as for valuing inventory on the balance sheet. Statement (ii) is false as product cost information may be necessary to justify rate increases, especially if the government authorities require the information to approve the increase.

Consider the Following Statements Regarding Product Cost Information