COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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accumulated costs based on orders
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The calculation of the cost per unit is done by dividing the total cost of each order by the number of units produced for that order
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products vary greatly
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all answers are correct
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Detailed explanation-1: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.
Detailed explanation-2: -Which of the following statement is correct with regard to job costing? Job costing differs from most other types of costing system because each cost unit is a job, and no two jobs are exactly the same. Each job is costed separately.
Detailed explanation-3: -Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit.
Detailed explanation-4: -With job order costing, products are made individually or in a smaller group, rather than in a large bulk of items. For example: Say a customer bought shoes personalized with their name written on the sides and shoelaces made of cotton, rather a basic nylon material.