Problems with Accurate Costing Occur When

question 98

Multiple Choice

Problems with accurate costing occur when:

• A)incorrect job numbers are recorded on source documents
• B)bar coding is used to record materials used on the job
• C)a computer screen requests an employee number before that employee is able to work on information related to a specific job
• D)All of these answers are correct.

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Definitions:

Profitability Ratios

Ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owners’ equity, and sales.

Return On Equity

Net income divided by owners’ equity; also called return on investment (ROI).