Hybrid-Costing Systems Use a Combination of _____

question 136

Multiple Choice

Hybrid-costing systems use a combination of _____.

• A)job-order costing and process costing ideas
• B)value-added and nonvalue-added costs
• C)direct and indirect costs
• D)fixed and variable costs

---

Definitions:

Transactions

The action of buying or selling in a business context, or the records of these actions.

Business Operations

The activities that businesses engage in on a day-to-day basis to increase the value of the enterprise and earn a profit.

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Fixed Ordering Costs

Fixed ordering costs are consistent expenses incurred in the process of ordering inventory or supplies, regardless of the order size.