A Major Difference Between Process Costing and Job-Order Costing Is

question 10

Multiple Choice

A major difference between process costing and job-order costing is

• A)costs are calculated at each step in a job-order system while only calculated at the end of a process costing system.
• B)costing of material components is more sensitive in a process costing system.
• C)job-order costing is focused on each specific job while process costing focuses on departmental activity.
• D)process costing uses only one work-in-progress account while job-order costing uses many work-in-progress accounts.

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Definitions:

Double Taxation

A situation where income or profits are taxed at two levels, typically once at the corporate level and again at the individual shareholder level.

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.