Which of the Following Would Most Likely Be Accounted for Using

question 54

Multiple Choice

Which of the following would most likely be accounted for using a job order costing system?

• A) The production of potato chips
• B) The production of sports energy drinks
• C) The creation of wedding photography portraits
• D) The refining of gasoline

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Definitions:

Fixed Budget

A budget that remains constant, regardless of changes in the volume of activity, sales, or other factors.

Direct Materials Quantity Variance

The difference between the actual amount of materials used in production and the expected amount.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and profit.