There Are Two Basic Types of Cost Accounting Systems: Job

question 98

True/False

There are two basic types of cost accounting systems: job order costing and periodic costing.

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Definitions:

Corporations

Legal entities recognized by law as separate from their owners, with the ability to own assets, incur liabilities, and engage in contracts or legal actions.

Market System

A market structure where the decisions about production, investment, and distribution are driven by the price signals that emerge from the dynamics of supply and demand.

Scarce Resources

Resources that are limited in supply and cannot satisfy all the demands placed on them.

Circular Flow Model

A simplified economic model that illustrates how money, goods, and services move through the economy in different markets between households and firms.