The Costing System Used by a Company Producing Custom Window

question 284

Multiple Choice

The costing system used by a company producing custom window treatments would be

• A) job costing.
• B) process costing.
• C) equivalent units costing.
• D) conversion cost costing.

---

Definitions:

Revenue Potential

The maximum amount of income that could be generated from a particular market or product, under ideal conditions.

Utility

A measure of satisfaction or happiness that a person derives from consuming goods and services.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit from consuming goods and services, given a consumer's limitations, such as income or resources.