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:

Retained Earnings

Represents the cumulative amount of net income that a company has not distributed to its shareholders as dividends but retained for reinvestment in the business.

Goodwill

An intangible asset representing the value of a company's brand name, reputation, and customer relationships, acquired during a business combination.

Issued Capital

The total value of the shares that have been issued by a company and are held by shareholders, representing the initial capital paid into the business.

Retained Earnings

This is the amount of net income left after a company has paid out dividends to its shareholders, typically reinvested in the business or held as a reserve.