An Operation-Costing System Is a Hybrid Costing System, Applied to Batches

question 31

True/False

An operation-costing system is a hybrid costing system, applied to batches of similar products.

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Definitions:

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.

Cost Reconciliation Report

A financial report that reconciles the estimated, budgeted, or standard costs with the actual costs incurred.