The Following Examples Briefly Describe the Manufacture of Two Different $\begin{array} {cc} &&&{ \text { I } } &&&&& { \text { II } } \\\end{array}$

question 60

Multiple Choice

The following examples briefly describe the manufacture of two different products. Which costing method (job-order or process) would be the best method to use for each project?
I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the statement, "People can have any flavor of Lawless Fine Wine Coolers they want as long it's strawberry."
II. Northridge Spacetronics is manufacturing three space shuttles for the country of Xanadu. Each shuttle is slightly different and production will last approximately two years.
$\begin{array} {cc} &&&{ \text { I } } &&&&& { \text { II } } \\\end{array}$
A. $\begin{array} {cc} & \text { Process } && \text { Process } \\\end{array}$
B. $\begin{array} {cc} & \text { Job-Order } & \text { Job-Order } \\\end{array}$
C. $\begin{array} {cc} & \text { Process } && \text { Job-Order } \\\end{array}$
D. $\begin{array} {cc} & \text { Job-Order } & \text { Process } \\\end{array}$

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Definitions:

Principal

The original sum of money borrowed in a loan or the amount of the investment.

Rate

The percentage at which interest is charged on a loan or earned on an investment.

Term Deposit

A banking product where money is locked away for a certain period of time at a fixed interest rate.

Maturity

The time at which a financial instrument, investment, or insurance policy reaches its final value and the principal is repaid or returned.