COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Below are information related to job order costing EXCEPT:
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To compute cost per job
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Cost are assigned to each job
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No unique characteristic is required
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Accumulates costs for each unique job
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Explanation:
Detailed explanation-1: -It accumulates costs for each department within the factory, is not a characteristic of a job order costing system.
Detailed explanation-2: -Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit.
Detailed explanation-3: -Job order costing is used to measure the revenue gained against the expenses incurred during the production process so that we can determine the profit for every unique job which is being manufactured.
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