Which of the Following Companies Is Likely to Use a Hybrid-Costing

question 59

Multiple Choice

Which of the following companies is likely to use a hybrid-costing system?

• A) Best Fit Corp., which manufactures pharmaceuticals
• B) Rida Corp., which processes and sells, after import, a single variant of Turkish marble to real estate companies
• C) Fast run, which sells a limited range of televisions, which go through similar manufacturing process
• D) Karoline Corp., which manufactures and sells a single model of cap

---

Definitions:

Process Costing System

An accounting methodology used for homogenous products, allocating costs across units of production, making it easier to determine per-unit costs.

Processing Department

A division within a manufacturing facility where a specific type of processing or production takes place.

Operations

The day-to-day activities required for the continued functioning of a business, focusing on producing goods or providing services.

Weighted-Average Method

An inventory costing method that assigns the same cost to each unit, calculated as the total cost of goods available for sale divided by the total units available.