Which Method of Measuring Costs Associated with Production Is More

question 10

Multiple Choice

Which method of measuring costs associated with production is more widely used in practice?

• A)Normal Costing
• B)Actual Costing
• C)Both are used equally.
• D)Neither one is used.
• E)cannot be determined

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Definitions:

Salaries Expense

The total cost incurred by a company for paying its employees, typically recorded in the expense accounts in the general ledger.

Equipment

Equipment refers to the tools, machinery, and other durable assets used by a company in its operations.

Supplies

Supplies are consumable items used in the daily operations of a business, such as office or cleaning materials, that are not resold to customers.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business.