Which of the Following Companies Is Most Likely to Use

question 13

Multiple Choice

Which of the following companies is most likely to use an operation-costing system?

• A) a company involved in manufacture of ball bearing on a large scale
• B) a company that has been awarded a contract to construct a bridge for the government
• C) a company that makes suits for which the basic design is same, but depending on specifications, each batch of suits varies somewhat from other batches
• D) a furniture making company which makes furnitures as per the specifications of the customers

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Definitions:

Wages Expense

It represents the total amount of monetary compensation, bonuses, and the value of non-cash benefits that a company pays to its employees during a specific period.

Prepaid Rent Account

An asset account on the balance sheet representing rent payments made in advance of the rental period to which they relate.

Accrue Revenue Earned

The process of recording revenue that has been earned but not yet received in cash or billed to the client.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.