Characteristics That Job Order Costing and Process Costing Have in Common

question 48

Multiple Choice

Characteristics that job order costing and process costing have in common include all of the following except:

• A)The use of predetermined factory overhead rates.
• B)Each can be used by service firms.
• C)The costs of materials and labor are charged to the departments where they are incurred.
• D)The primary objective is to complete a unit cost for products.

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Definitions:

Investment

Assigning funds with the goal of achieving returns or making a profit.

Compounded Annually

interest calculation method where the interest is added to the principal once a year.

Interest

The cost of borrowing money, calculated as a percentage of the amount borrowed.

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time.