ECONOMICS

COST ACCOUNTING

INTRODUCTION TO COST ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is the basic document that is used to accumulate the cost of each order in job order costing?
A
Invoice
B
Purchase order
C
Requisition Sheet
D
Job cost sheet
Explanation: 

Detailed explanation-1: -A job cost sheet is a complete sheet prepared by the factory accountant for every job started in the factory. It is an important document for accumulating all costs related to a particular job. In a job order costing system, a job cost sheet is maintained for each job.

Detailed explanation-2: -The correct answer is job cost sheet. A sheet which is used to record all the cost associated with the manufacturing of the products and services is known as the job cost sheet.

Detailed explanation-3: -A job order cost sheet accumulates the costs charged to a specific job. It is used within a job costing system. This cost sheet is most commonly compiled for single-unit or batch-sized production runs.

Detailed explanation-4: -Cost sheet: In job costing, a cost sheet is often used to record costs incurred in stages of production. The cost sheet and job order work may also be combined, when costs are recorded on the production order document.

There is 1 question to complete.