Operation Costing Is a Hybrid Costing System for Products and Services

question 102

Multiple Choice

Operation costing is a hybrid costing system for products and services that uses:

• A)Job costing to assign direct material costs and standard costing for conversion cost.
• B)Process costing to assign conversion costs and normal costing for materials cost.
• C)Job costing for direct materials costs and process costing for conversion cost.
• D)Normal costing for conversion cost and process costing for materials cost.

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Definitions:

Strategic Decisions

High-level choices made by an organization's leadership that can significantly impact its overall direction and success, typically involving long-term planning and resource allocation.

Long-Term Plans

Strategy and objectives set for achieving goals over an extended period, often spanning years.

Useful Information

Data that is accurate, relevant, and timely, providing significant value to the decision-making process by enhancing understanding or reducing uncertainty.

Completeness

The state or condition of having all necessary parts, information, or elements present and accounted for.