A Company Should Use Process Costing Rather Than Job Order

question 9

Multiple Choice

A company should use process costing rather than job order costing if

• A) production is only partially completed during the accounting period.
• B) the product is produced in batches only as orders are received.
• C) the product is composed of mass-produced homogeneous units.
• D) the product goes through single stage of production.

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Definitions:

More Elastic

Referring to a greater sensitivity of quantity demanded or supplied to changes in price, compared to goods or services with less elasticity.

Demand Elasticity

A measure of how much the demand for a product or service changes in response to changes in its price or other factors.

Elasticity of Demand

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Perfectly Inelastic

A market situation where the quantity demanded or supplied does not change in response to a change in price.