ECONOMICS

Detailed explanation-1: -Answer and Explanation: Job cost sheet is used in job order costing and not in process costing. This is because the job cost sheet monitors the cost incurred of each product produced during the period and job-order costing is most appropriate to be used by companies that accept customization.

Detailed explanation-2: -The company preparing the production report uses the process costing system. It is so because the production cost report is prepared in process costing system. While in job order costing system, job cost record is prepared.

Detailed explanation-3: -When job order costing is used, costs are accumulated on a job cost sheet. Process costing averages the total cost of the process over the number of units produced. Source documents are used to assign all manufacturing costs to jobs. A materials requisition form is used to authorize the purchase of direct materials.

Detailed explanation-4: -Job cost sheets are the most important job costing document. They summarize all of the key information about the job and accumulate total direct materials costs, total direct labor costs and overhead costs applied to the job to determine the total costs for the job.

Detailed explanation-5: -Job costing is used for very small production runs, and process costing is used for large production runs.