The Costing System That Reduces the Use of Broad Averages

question 90

Multiple Choice

The costing system that reduces the use of broad averages for assigning the cost of resources to cost objects is the ________.

• A)job-costing system
• B)process-costing system
• C)product-costing system
• D)market-costing system
• E)refined-costing system

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Definitions:

Variable Selling

Costs that vary directly with the level of sales activity, such as commissions or credit card fees.

Special Order

A customer order for goods or services that is outside a company's normal production or service offerings, often requiring unique specifications or quantities.

Financial Advantage

A benefit or edge gained in financial terms, often through investments, cost savings, or favorable financial conditions.

Joint Process

A manufacturing operation that simultaneously produces more than one product from a single raw material input.