An Operations Costing System Is

question 9

Multiple Choice

An operations costing system is:

• A) identical to a process costing system except that actual cost is used for manufacturing overhead.
• B) the same as a process costing system except that materials are allocated on the basis of batches of production.
• C) the same as a job order costing system except that materials are accounted for in the same way as they are in a process costing system.
• D) the same as a job order costing system except that no overhead allocations are made since actual costs are used throughout.

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Definitions:

Organizational Growth

The process of an organization enlarging or expanding its operations, activities, and impact.

Diversification

A strategy of reducing risk by owning a variety of investments or business operations across different industries or categories.

Mechanistic Structures

Describes organizational forms that are highly bureaucratic, with strict rules, procedures, and a clear hierarchy of authority.

Formalization

The process of creating or implementing formal rules, procedures, and structures within an organization to standardize operations and behaviors.