If a Product Is Made to Customers' Orders or Specifications

question 79

Multiple Choice

If a product is made to customers' orders or specifications or if products are made in separately identifiable "lots" or "batches," the appropriate cost accounting system is a

• A) job order system.
• B) process system.
• C) perpetual system.
• D) periodic system.

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Definitions:

Marginal Cost

The cost escalation resulting from the creation of one additional unit of a good or service.

Lawn-mowing

The process of cutting the grass in a yard or field to a uniform length, typically using a manual, electric, or gas-powered lawn mower.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period.

Perfectly Competitive

An alternative term for perfect competition, emphasizing a market scenario with many buyers and sellers and no barriers to entry.