Which statement describes the Calculate Retroactive Costing process?

• A. It recalculates costs for retroactive changes to costing setups.
• B. It recalculates all payroll totals for the current period.
• C. It resets costing results to zero.
• D. It exports costing data to GL.

Answer: (A)

Calculate Retroactive Costing is the process you use when costing setups are changed in a way that should apply to past pay periods. It re-runs the costing for those earlier periods using the updated costing rules so the historical costs align with the new setups. This keeps financial reporting accurate without affecting payroll totals for the current period unless those retroactive changes apply there as well. It’s not about redoing a current-period payroll, resetting data to zero, or exporting costing data to the General Ledger—that latter step is handled by the separate GL interface.