The Costing System Used to Assign Costs to a Distinct,identifiable

question 33

Multiple Choice

The costing system used to assign costs to a distinct,identifiable job or service is called:

• A) job costing system.
• B) material control system.
• C) process costing system.
• D) average costing system.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties, other than in a liquidation sale.

Liability Recognition

The process of recording liabilities on the financial statements, ensuring that all existing debts and obligations of a company are reported in accordance with accounting principles.

Note Receivable

A financial asset representing a promise to receive a definite amount of money at a future date, typically with interest.