Match the Business with the Most Likely Type of Costing

question 4

Multiple Choice

Match the business with the most likely type of costing system.
1) Oil refinery
2) Automotive brake repairer
3) Bathroom renovator
4) Commercial printer
5) Management consultant
I Job costing
II Process costing

• A) 1 and I, 2 and II, 3 and I, 4 and II, 5 and I
• B) 1 and I, 2 and I, 3 and I, 4 and II, 5 and II
• C) 1 and II, 2 and I, 3 and I, 4 and I, 5 and I
• D) 1 and II, 2 and II, 3 and I, 4 and I, 5 and I

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Definitions:

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, encompassing methods such as buying stocks, bonds, or real estate.

Required Rate

A rephrased definition: The minimum return rate required by investors to consider investing in a particular asset or project.

Coupon Interest Rate

Stated rate of interest on a bond, defined as the coupon payment divided by the par value.

Market Value

Market value is the current price at which an asset or company can be bought or sold in the marketplace, reflecting the value the market places on it.