Match Each Item with the Correct Statement Below

question 37

Multiple Choice

Match each item with the correct statement below.
-A costing system that accumulates production costs by process or by department for a given period of time

• A)actual cost system
• B)job-order costing system
• C)normal cost system
• D)process-costing system

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Definitions:

Segmented Income Statement

An income statement that separates costs and revenues into different segments, departments, or divisions of a business.

Contribution Approach

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated into product and period costs for external reporting purposes.

Manufacturing Overhead

All indirect costs related to manufacturing that cannot be directly traced to specific items produced, such as factory rent, utilities, and equipment depreciation.

Variable Costing

An accounting approach that only considers variable costs—costs that change with the level of output—in product costing and decision-making.