Asked by Katherine Tortorella on Apr 28, 2024
Verified
Job order cost accounting systems may be used for planning and controlling a service business.
Job Order Cost Accounting
A system used to calculate the costs associated with a specific job or order, tracking direct labor, direct materials, and overhead.
Service Business
A type of business that provides intangible products or services to its customers rather than selling physical goods.
- Understand the purpose and functionality of a job order costing system in various organizational settings.
- Comprehend how job order costing is adapted and applied in service industries.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
True
Explanation :
Job order cost accounting systems can be used in service businesses that provide customized services to clients such as law firms, consulting firms, and advertising agencies. In such businesses, the costs of providing services can vary from client to client, and the job order cost accounting system helps in allocating costs to each job and determining the profitability of each job or project.
Learning Objectives
- Understand the purpose and functionality of a job order costing system in various organizational settings.
- Comprehend how job order costing is adapted and applied in service industries.
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