A System of Accounting in Which the Costs of Each

question 134

Multiple Choice

A system of accounting in which the costs of each process are accumulated and then assigned to the units of product that passed through the process is a:

• A) General cost accounting system.
• B) Process cost accounting system.
• C) Job order cost accounting system.
• D) Manufacturing cost accounting system.
• E) Goods in process accounting system.

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Definitions:

Intra-entity Transfers

Financial or physical transactions conducted internally within a corporation, involving the exchange of resources or assets between departments or subsidiaries.

Voting Stock

Shares of stock that grant the shareholder voting rights in a corporation, typically in matters like electing the board of directors.

Foreign Corporation

A corporation that is incorporated under the laws of a different country from the one in which it primarily operates.

Inventory

Items owned by a company consisting of raw materials, work-in-process, and finished goods that are considered to be part of the business's assets that are ready or will be ready for sale.