There Are Two Basic Types of Cost Accounting Systems: Job

question 98

True/False

There are two basic types of cost accounting systems: job order costing and periodic costing.

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Definitions:

Direct Labor Wage Rate

The rate of pay for workers directly involved in manufacturing or producing goods, excluding indirect labor such as supervisors.

Direct Labor-Hours

A measure of the amount of time workers spend directly manufacturing a product, often used in costing and budgeting.

Raw Materials Purchases Cost

The expense incurred in buying raw materials intended for the manufacturing of products.

Budgeted Unit Sales

The number of units that an organization plans or expects to sell in a specific period, according to its budget.