The Two Most Common Types of Costing Systems Are

question 58

Multiple Choice

The two most common types of costing systems are:

• A) Process and transfer costing systems.
• B) Job-order and process costing systems.
• C) Job-order and direct costing systems.
• D) Process and standard costing systems.

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Definitions:

Lot Size

The quantity of items that are processed, manufactured, or purchased at one time.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, considering lead times.

Average Inventory

The mean amount of inventory held over a specific period, used to calculate turnover rates and order quantities.

Service Level

A measure of the quality of service provided to customers, often reflected in the availability or reliability of a service.