Job-Order Costing Would Be More Likely to Be Used Than

question 275

True/False

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

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Definitions:

Contribution Margin Ratio

A financial metric indicating the portion of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Total Sales Revenue

The total income generated from selling goods or services before any expenses are subtracted.

Selling Price

The amount of money for which a product or service is sold to the customer, including all applicable costs and markup.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs.