Match These Terms with Their Definitions

question 19

Multiple Choice

Match these terms with their definitions.
-agreement whereby the legal owner of the asset retains substantially all of the risks and obligations of ownership

• A)callable bonds
• B)finance lease
• C)convertible bonds
• D)debenture bonds
• E)junk bonds
• F)mortgage bonds
• G)notes payable
• H)operating lease
• I)secured bonds

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Definitions:

Process Costing System

A method of costing used for homogeneous products that are continuously produced, assigning costs to units of output on the basis of direct materials, labor, and manufacturing overhead.

Weighted-Average Method

An inventory costing method that averages out the cost of goods available for sale or use, by weighting inventory items according to their quantities.

Processing Department

A specific department within a manufacturing facility where goods undergo a particular process in the production cycle.

Weighted-Average Method

An approach to assess the cost of sold goods and concluding inventory by leveraging the average price of every unit available for purchase.