In Many Projects, When Large Dollar Amounts Are Expended for Materials

question 10

Multiple Choice

In many projects, when large dollar amounts are expended for materials or services that are used over a period longer than one cost reporting period, they can be referred to as ____ costs.

• A) committed
• B) conventional.
• C) conventional
• D) cumulative

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Definitions:

Specific Production

A manufacturing or production process tailored to produce specific, customized products for individual customers' requirements.

Process Costing System

An accounting system used to calculate the cost of producing products in industries where the production process is continuous.

Process Costing System

An accounting method used where goods are produced in a continuous process, costs are averaged over all units to calculate unit costs.

Factory Overhead Costs

Indirect costs incurred during the manufacturing process, not including the costs of direct labor and materials.