Operation Costing Systems Are Used When the Products Have

question 1

Multiple Choice

Operation costing systems are used when the products have:

• A) used a standardized method that is repeatedly performed.
• B) common characteristics and no individual characteristics.
• C) individual characteristics and no common characteristics.
• D) some common characteristics and some individual characteristics.

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Definitions:

Commercial Substance

A concept in accounting that signifies a transaction causes a change in the future cash flows that is significant to a business.

Asset Turnover

A financial ratio that measures the efficiency of a company in using its assets to generate sales or revenue.

Net Sales

The net income generated from sales after deducting returns, allowances, and discounts.

Total Assets

The combined value of all owned resources and property by an entity that has economic value.