An Operation-Costing System Is a Hybrid Costing System Applied to Batches

question 24

True/False

An operation-costing system is a hybrid costing system applied to batches of similar,but not identical,products.

---

Definitions:

Goodwill Impairment

An accounting charge that occurs when the book value of goodwill exceeds its fair market value, indicating the assets are worth less than their currently recorded value.

Fair Value

An estimation of the market value of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties.

Reporting Unit

A component of an organization for which discrete financial information is available and is reviewed regularly by the operations’ segment manager.