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When Compared to Job Order Costing,why Are Additional Journal Entries

question 157

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When compared to job order costing,why are additional journal entries required in a process costing system?


Definitions:

Secured Interest

A property interest created by agreement or by law over assets to secure the performance of an obligation, usually the payment of a debt.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay according to the agreed terms.

Repossessing

Repossessing refers to the process of a lender taking back possession of property (typically collateral) when the borrower fails to make required payments.

Collateral

An asset that a borrower offers to a lender as security for a loan, which may be forfeited in case of default.

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