Select the Most Appropriate Costing System for Each of the Following

question 144

Multiple Choice

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Cruise ship builder

• A)Process costing
• B)Job-order costing

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Definitions:

Interest Bearing

A term indicating that a financial instrument or account accrues interest over time, such as a loan, bond, or savings account.

Note Payable

A written promise to pay a certain amount of money on a specific future date, representing a liability for the issuer.

Account Payable

A liability represented by an obligation to pay off a short-term debt to its creditors or suppliers.

Notes Payable

An accounting term for amounts owed by a business that are evidenced by promissory notes.