Problems with Costing Occur When ________

question 35

Multiple Choice

Problems with costing occur when ________.

• A) incorrect job numbers are recorded on source documents
• B) bar coding is used to record materials used on the job
• C) a computer screen requests an employee number before that employee is able to work on information related to a specific job
• D) incorrect product delivery forms are entered into the system

---

Definitions:

Differential Cost

The variance in price between two different choices or alterations in production volumes.

Manufacturing Operations

The processes and activities involved in the production of goods, typically in a factory setting, involving the conversion of raw materials into finished products.

Unused Capacity

Represents the difference between a company's actual production levels and its maximum potential output, indicating resources that are not being fully utilized.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.