A Common Classification of Costs Is by Business Function

question 135

Multiple Choice

A common classification of costs is by business function. Which of the following classifications is not by business function?

• A) cost object
• B) research and development
• C) distribution
• D) production

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Definitions:

Completed During Period

Refers to activities, projects, or production that have been started and finished within a specific timeframe, often relating to manufacturing or project management.

Job Order Manufacturing

A production system in which goods are manufactured based on specific customer orders, allowing for customization of products.

Process Manufacturing

A production method that produces goods by combining supplies, ingredients, or raw substances using a formula or recipe, often resulting in a batch of finished goods.

Equivalent Units

A method in cost accounting to express the amount of work done by incomplete processes in terms of fully completed units.