COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All characteristics of job-order costing except,
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Homogeneous products.
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Wide variety of distinct products.
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Costs accumulated by job.
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Cost per unit computed by dividing total or department job costs by units produced on that job.
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Explanation:
Detailed explanation-1: -(i) The production is carried on in batches and each batch consists of a specified number of similar products. ADVERTISEMENTS: (ii) The production is done for own stock to be sold to customers. (iii) The total cost of the batch is divided by the total number of units in the batch to find out the cost per unit.
Detailed explanation-2: -Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit.
Detailed explanation-3: -It accumulates costs for each department within the factory, is not a characteristic of a job order costing system.
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