Which of the Following Statements Is True of Costing Systems

question 85

Multiple Choice

Which of the following statements is true of costing systems?

• A) A process costing system would be used by manufacturers of custom-made perfumes.
• B) A job order costing system would be used by manufacturers of baking utensils.
• C) A construction company would likely use a process costing system.
• D) An accounting firm would likely use a job order costing system.

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Definitions:

Probability Level

A statistical measure that indicates the likelihood of a particular outcome or event occurring.

Quality

The degree to which a product, service, or process is free from defects, deficiencies, and significant variations, measured against agreed standards or specifications.

Degree of Freedom

In statistics, it refers to the number of values in the final calculation of a statistic that are free to vary.

Group Means

The average values obtained from the data points of each group or category under examination in a study.