Which of the Following Product Costing Systems Is Normally Used

question 127

Multiple Choice

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

• A)Fixed costing
• B)Job costing
• C)Process costing
• D)LIFO costing

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Definitions:

Net Operating Income

The profit a company makes from its core business operations, excluding deductions of interest and taxes.

Net Cash Flow

The amount of cash generated or lost over a specific period, taking into account cash inflows and outflows from operational, investing, and financing activities.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as factory rent or salaries of production supervisors.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead costs.