Which of the Following Statements Are True

question 33

Multiple Choice

Which of the following statements are true?

• A) Professional service entities employ process costing.
• B) Mass service entities employ job costing.
• C) Service shops generally employ hybrid costing.
• D) Merchandising entities employ job costing for customer services.

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Definitions:

Financial Reporting

The process of providing financial information to company stakeholders to help in making business decisions.

Units

A measure of quantity, such as items or products, used in business operations and accounting.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Fixed Cost

Costs that do not vary with the production volume or level of services provided, such as rent, salaries, and insurance.