Which of the Following Costing Systems Assigns Actual Costs of Materials

question 96

Multiple Choice

Which of the following costing systems assigns actual costs of materials to inventory?

• A)actual costing system
• B)normal costing system
• C)standard costing system
• D)both a and b

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Definitions:

Stockholders' Equity

The owners' claim on the company's assets, calculated as the company's total assets minus its total liabilities; also known as shareholders' equity.

Assets

Resources owned or controlled by a business, providing future economic benefits.

Additional Paid-in Capital

The amount of money shareholders have invested in the company above the nominal value of the shares.

Common Stock

A type of equity security representing ownership in a corporation; holders may receive dividends and have voting rights at shareholders' meetings.