In General Terms the Process of Assigning Costs to a Particular

question 92

Multiple Choice

In general terms the process of assigning costs to a particular product or service is called

• A)a cost allocation system.
• B)a cost assignment system.
• C)a job costing system.
• D)a process costing system.
• E)a cost recording system.

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Definitions:

Depreciable Cost

The total amount that can be depreciated over the life of an asset, typically the cost of an asset minus its salvage value.

Straight-Line Depreciation

A process for determining depreciation by uniformly distributing an asset's cost across its lifespan.

Residual Value

Residual value is the estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its scrap value.

Double-Declining Balance

An accelerated method of depreciation that doubles the regular depreciation approach, resulting in larger depreciation expenses in the initial years of an asset's life.