In a Job-Order Costing System

question 103

Multiple Choice

In a job-order costing system,

• A)standards cannot be used.
• B)an average cost per unit within a job cannot be computed.
• C)costs are accumulated by departments and averaged among all jobs.
• D)overhead is typically assigned to jobs on the basis of some cost driver.

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Definitions:

Shortage

A shortage occurs when the demand for a product exceeds its supply at a particular price, leading to a scarcity of the product.

Price Floor

A government-imposed limit below which prices cannot fall, often used in agricultural markets.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, leading to market stability.

Ineffective

Not producing the intended or desired effect.