Companies That Mass-Produce Similar Products or Employ a Continuous Production

question 31

Multiple Choice

Companies that mass-produce similar products or employ a continuous production process typically use which of the following costing systems?

• A)Process
• B)Job order
• C)Either process or job order
• D)Neither process nor job order

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent ones, preparing the company's books for the next period.

Fabricated Products Company

A business that specializes in manufacturing and selling products made from raw materials through various processes.

Income Statements

An income statement is a financial document summarizing a company's revenues, expenses, and profits over a specified period.

Perpetual Inventory System

An inventory management method where inventory levels are updated in real time with each sale or purchase transaction.