Which of the Following Is an Industry That Would Use

question 69

Multiple Choice

Which of the following is an industry that would use a process costing system rather than a job order costing system?

• A)Home remodeling contractor
• B)Music production studio
• C)Paint manufacturer
• D)Custom furniture manufacturer

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Definitions:

Checks Outstanding

Checks outstanding refer to checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been received and recorded by a company but have not yet been recorded by the bank.

Outstanding Checks

Checks that have been written and recorded in the check register but have not yet been cashed or cleared by the bank.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.