The Two Basic Types of Cost Accounting Systems Are

question 10

Multiple Choice

The two basic types of cost accounting systems are:

• A) Job order costing and perpetual costing.
• B) Job order costing and customized product costing.
• C) Job order costing and customized service costing.
• D) Job order costing and process costing.
• E) Job order costing and periodic costing.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's actual profitability.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money.

Carrying Value

The amount at which an asset is recognized in the balance sheet, subtracting any accumulated depreciation or amortization.

Maturity

The date on which a financial instrument or obligation becomes due and is to be paid or settled.