Which of the Following Is Correct Regarding Cost Systems

question 38

Short Answer

Which of the following is correct regarding cost systems? $\begin{array}{lll}&\text { Job Order }&\text { Process }\\\text { a. Work in process account } & \text { several } & \text { one for each process } \\\text { b. Work in process account } & \text { one } & \text { one } \\\text { c. Work in process account } & \text { one } & \text { one for each process } \\\text { d. Work in process account } & \text { several } & \text { one }\end{array}$

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Definitions:

Numeraire

A standard unit of account or measuring stick in economics used to compare the value of various goods or services.

Utility Function

A mathematical tool used in economics to represent a consumer's preference ranking of different bundles of goods.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.

Competitive Equilibrium

A state in markets where supply equals demand, and no participant has an incentive to change their behavior.