What Costing System Uses Job-Order Costing to Assign Material Costs

question 79

Multiple Choice

What costing system uses job-order costing to assign material costs and process costing to assign conversion costs?

• A)operation costing
• B)cost reconciliation
• C)batch production process
• D)equivalent unit of output

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Definitions:

Plantwide Rate

A single overhead absorption rate used throughout an entire manufacturing plant, applying the same rate to all products regardless of the department.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on relevant allocation bases, such as labor hours or machine hours.

Budgeted Activity Rate

The estimated rate or cost of business activities based on the budget for a specific period, often used for forecasting and planning purposes.