In a manufacturing context explain how product cost can be classified as an asset and then as
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Question:
- In a manufacturing context explain how product cost can be classified as an asset and then as an expense. what are underlying principles behind this accounting treatment?
- plasma pathology has injured the following costs in its diagnostic blood laboratory during the past 12 month January to December.
month number of test completed cost
January 6100 90 000
February 5300 87000
march 4900 76 200
April 4800 78 100
may 5050 80 700
June 3050 61 000
July 4500 74 500
august 7100 99 000
September 6200 95 600
October 4700 74 800
November 5900 89 000
December 6000 91 000
Required
- Use interpreting regression analysis to estimate the variable cost per blood test and the fixed cost per month.
- Develop a formula to express the cost behavior exhibited by plasm pathology's cost
- Predict the total cost in a month when 5500 test are performed
Expert Answer:
Here is how product costs can be classified as an asset and then as an expense When a product is sti... View the full answer
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