Both Job-Order and Process Costing Systems Use Averaging to Compute

question 36

True/False

Both job-order and process costing systems use averaging to compute unit product costs.

---

Definitions:

Marginal Revenue Product

The supplementary income produced by the application of one more unit of a factor or resource in production.

Wage Rate

The amount of compensation an employee receives per unit of time or per task completed, typically expressed in terms of dollars per hour.

Marginal Revenue Product

The supplementary income derived from the deployment of an extra unit of a production resource, like manpower or assets.

Rent

A regular payment made by a tenant to an owner for the use of the owner's property or land.