Which of the Following Types of Businesses Would Most Likely

question 27

Multiple Choice

Which of the following types of businesses would most likely use a batch process structure?

• A)Company that builds cruise ships.
• B)An automotive assembler such as Ford Motor Co.
• C)A glass beverage bottle manufacturer.
• D)A company that produces automobile seats.

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Definitions:

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is received or paid, as opposed to the accrual basis accounting.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or loss of usefulness.

Plant And Equipment

Plant and Equipment refer to the long-term assets used in the operation of a business, excluding buildings or real estate, that contribute to the production process.

Notes Payable

A financial obligation represented by a written promissory note, which specifies the amounts borrowed, interest rate, and maturity date.