Which of the Following Companies Is Most Likely to Use

question 138

Multiple Choice

Which of the following companies is most likely to use an operation-costing system?

• A) a company involved in manufacture of ball bearing on a large scale
• B) a company that has been awarded a contract to construct a bridge for the government
• C) a company that makes suits for which the basic design is same, but depending on specifications, each batch of suits varies somewhat from other batches
• D) a furniture making company which makes furniture pieces as per the specifications of the customers

---

Definitions:

Assets

Economic resources owned or controlled by a company; they have measurable value and are expected to benefit the company by producing cash inflows or reducing cash outflows in the future.

Stock Price Appreciation

The rise in the value of a company's shares over time, reflecting the market's increased valuation of the company.

Common Stock

A form of corporate equity ownership, a type of security representing ownership of a fraction of a company, providing voting rights and a share in the company’s profits.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.