Which of the Following Are the Two Main Types of Cost

question 101

Multiple Choice

Which of the following are the two main types of cost accounting systems for manufacturing operations?

• A) Process cost and general accounting systems
• B) Job order cost and process cost systems
• C) Job order and general accounting systems
• D) Process cost and replacement cost systems

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Definitions:

Ending Inventory

The amount of goods available for sale at the finis of an accounting cycle.

Perpetual LIFO Method

The perpetual LIFO (Last In, First Out) method is an accounting technique for inventory valuation where goods are assumed to be sold in the reverse order they were acquired, continuously adjusting inventory value.

Income Before Taxes

The profit a company generates before accounting for taxes, used to assess the operational efficiency of a business.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities.