A Custom-Home Builder Would Likely Utilize

question 85

Multiple Choice

A custom-home builder would likely utilize:

• A) job-order costing.
• B) process costing.
• C) mass customization.
• D) process budgeting.
• E) joint costing.

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Definitions:

Accounts Payable Period

The average number of days it takes a company to pay off its suppliers and creditors.

Operating Cycle

The time period between the acquisition of inventory by a company and the receipt of cash from the sale of that inventory.

Payables Turnover

A financial efficiency ratio that measures how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Inventory Turnover

Inventory Turnover is a measure of how often a company sells and replaces its stock of goods within a certain period, indicating efficiency in managing inventory.