Which of the Following Statements Is Correct

question 74

Multiple Choice

Which of the following statements is correct?

• A)Companies must choose to use either job order costing or process costing;there is no overlap between the two systems.
• B)Companies always use job order costing unless it is prohibitively expensive.
• C)Companies always use process costing unless it is prohibitively expensive.
• D)Companies often provide products and services that have both common and unique characteristics,so they may use a blend of job order and process costing.

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Definitions:

Schedule K-1

A tax document used in the United States to report an individual's share of income, deductions, credits, etc., from partnerships, S corporations, or other pass-through entities.

Schedule E

A part of the IRS tax forms used for reporting income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Schedule A

A tax form used by American taxpayers to itemize deductions, such as medical and dental expenses, taxes paid, and interest.

Rental Income

Income received from leasing property to tenants, considered taxable income and must be reported to tax authorities.