Which of These Is a Cost That Results from the Joint

question 60

Multiple Choice

Which of these is a cost that results from the joint use of a facility or a service by several products,departments,or processes?

• A)direct cost.
• B)indirect cost.
• C)marginal cost.
• D)variable cost.

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Definitions:

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the average cost of all similar items held in inventory.

Inventory System

The method a company uses to manage and track its inventory, ensuring the right quantity of products at the right time and minimizing costs.

Perpetual

A system of inventory management wherein updates are made continuously to the inventory accounts after each purchase or sale.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities match the order and invoice.