Which of the Following Are the Two Main Types of Cost

question 39

Multiple Choice

Which of the following are the two main types of cost accounting systems for manufacturing operations?

• A) process cost and general accounting systems
• B) job order cost and process cost systems
• C) job order and general accounting systems
• D) process cost and replacement cost systems

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful comparison for actual versus budgeted performance.

Budgeted Costs

Estimated financial plan for expenditures over a specified period.

Direct Labor Hours

This term represents the total time spent by workers directly involved in the manufacturing process.

Flexible Budget Graph

A visual representation that shows the difference between actual and expected performance at various levels of activity.