Which of the Following Companies Will Most Likely Use a Process

question 11

Multiple Choice

Which of the following companies will most likely use a process costing system?

• A)A company that produces recycle bins
• B)A company that designs and bakes wedding cakes
• C)An ambulance service
• D)An attorney that handles divorce cases

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Definitions:

Accounts Payable

Short-term liabilities or debts a company owes to its creditors for goods and services purchased on credit.

Inventory

The total stock of goods or materials a company holds for the purpose of resale or production.

CCA Depreciation

Capital Cost Allowance, a system in Canada that determines how a business can claim depreciation on tangible capital assets for tax purposes.

FIFO

"First In, First Out," an accounting method for valuing inventory where the oldest items are sold first.