Which Product Costing System Distributes Costs Evenly Across Total Production

question 37

Multiple Choice

Which product costing system distributes costs evenly across total production?

• A) Process cost system
• B) Job order cost system
• C) Standard cost system
• D) Variable cost system

---

Definitions:

Cost Of Capital

The rate of return that a business must achieve to meet the expectations of its investors and creditors, representing the opportunity cost of investing capital in a specific business.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.

Present Values

The now-value of a forthcoming financial amount or cash flow pattern, discounted at a fixed rate of return.