Companies That Use Process Costing Systems

question 109

Multiple Choice

Companies that use process costing systems

• A)generally produce large quantities of identical items.
• B)trace costs to specific items produced.
• C)accumulate costs by completed products rather than by departments.
• D)All of these answer choices are correct.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.

Exhaustible Resource

A natural resource, such as oil or coal, that has a finite supply and can be depleted if used unsustainably.

User Cost

The cost of using a product or service, taking into account factors such as depreciation, wear and tear, and opportunity cost of using the asset rather than investing the money elsewhere.

Depletable Resource

A natural resource that can be diminished by use, such as fossil fuels or minerals, which are not renewable over short time spans.