Selecting an Appropriate Cost Accounting System

question 61

Essay

Selecting an appropriate cost accounting system
Listed below are seven businesses.In the spaces provided,identify whether a job order costing system or a process costing system would most likely be appropriate.
(a)________ Nancy's Paper Plate Company
(b)________ Two Leg Pants Manufacturers,Inc.
(c)________ Solid Residential Contractors
(d)________ Float's Boats
(e)________ Big Heart Hospital
(f)________ Fizz Soda,Inc.
(g)________ Sugarmore Candies,Inc.

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Definitions:

Business Judgment Rule

A legal principle that shields corporate directors and officers from liability for decisions made in good faith but that ultimately resulted in loss or damage.

Takeover Bid

An offer made to acquire a controlling interest in a company, often against the wishes of its management.

General Agents

Representatives of insurance companies who have the authority to act on behalf of these companies in various transactions.

Corporate Officers

Individuals elected or appointed to manage the day-to-day operations and strategic direction of a corporation, such as CEOs, CFOs, and COOs.