A Hybrid Costing System That Uses Job Costing to Assign

question 104

Multiple Choice

A hybrid costing system that uses job costing to assign direct materials costs, and process costing to assign conversion costs to products or services is:

• A)Process costing.
• B)Operation costing.
• C)Actual costing.
• D)Product costing.
• E)Job costing.

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Definitions:

Direct Labor

The wages and related expenses for workers who are directly involved in the production of goods.

Cost of Tracie's Direct Labor

The cost of Tracie's direct labor refers to the wages and associated expenses for the hours worked directly on products or services by Tracie, as an example of an employee's labor costs.

Budgeted Data

A financial plan for the future concerning the revenues and costs of a business.

Production Needs

Refers to the requirements necessary to complete the manufacturing process, including raw materials, labor, and machinery.