Asked by Chris Miller on May 20, 2024
Verified
A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
Job Order Cost
The cost calculated for a specific manufacturing job, tracking direct labor, direct materials, and overhead.
Product Quantity
The number of units of a particular product that are produced, available for sale, or sold.
Factory
A building or group of buildings where goods are manufactured or assembled chiefly by machine.
- Understand the distinction and application between job order cost and process cost accounting systems.
Verified Answer
ND
nadia delgadoMay 20, 2024
Final Answer :
True
Explanation :
In a job order cost accounting system, costs are accumulated and tracked for each specific job, order, or project. Each job or order has its own unique characteristics and costs, which are separately recorded and accounted for. This enables managers to determine the exact cost of producing each unit of product and to make informed decisions about pricing, profitability, and efficiency.
Learning Objectives
- Understand the distinction and application between job order cost and process cost accounting systems.