A Hybrid Costing System That Is Often Used When Manufacturing

question 26

Multiple Choice

A hybrid costing system that is often used when manufacturing goods that have some common characteristics plus some individual characteristics is called:

• A) continuous flow process.
• B) cost management system.
• C) two-stage allocation system.
• D) operations cost.

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Definitions:

Annual Cash Dividends

The total amount of cash payments made to shareholders in a year as a distribution of corporate profits.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Days' Sales Uncollected

A financial ratio indicating the average number of days it takes for a company to collect revenue after a sale has been made.

Accounts Receivable

Money owed to a company by its customers from sales or services on credit that is expected to be paid within a short duration, usually one year.