Match Each Business That Follows to the Type of Costing

question 172

Multiple Choice

Match each business that follows to the type of costing system (a or b) it would typically use.
-Movie studio

• A)Job order costing
• B)Process costing

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Definitions:

Average Inventory

An accounting metric that estimates the value or the number of a particular good that a company has in stock over a specific period.

Return on Common Shareholders' Equity Ratio

A financial metric that measures a company's profitability by showing how much profit it generates with the money shareholders have invested, specifically focusing on common stockholders.

Profit Margin

A financial metric that measures the amount of profit a company earns per dollar of revenue, indicating the efficiency of the company in converting sales into profits.

Inventory Turnover Ratio

A measure of how often a company sells and replaces its inventory over a period, indicating the efficiency of inventory management.