The Flow of Costs in a Job Order Cost System

question 139

Multiple Choice

The flow of costs in a job order cost system

• A) involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.
• B) cannot be measured until all jobs are complete.
• C) measures product costs for a set time period.
• D) generally follows a LIFO cost flow assumption.

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Definitions:

Debt Investments

Investments in bonds or other debt instruments where the investor lends money to an entity in exchange for interest payments and the return of principal at maturity.

Available-For-Sale

A classification for financial assets indicating they are neither held for trading purposes nor intended to be held to maturity, and therefore can be sold.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide rights to dividends and capital gains.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net tangible assets.