Which of the Following Transactions in a Job-Order Costing System

question 60

Multiple Choice

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

• A)applying factory overhead to jobs
• B)closing overapplied factory overhead
• C)delivering a completed job to a customer
• D)moving the job from one production department to another

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Definitions:

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, typically associated with public goods or services, like education or vaccination.

Market Inefficiency

A situation where resources are not allocated optimally, leading to a waste of resources or an inability to reach market equilibrium.

Supply And Demand Diagram

A graphical representation of the relationship between the quantity of a good or service that suppliers are willing to offer and the quantity that consumers are willing to purchase at various prices.

Negative Externality

occurs when a product or decision results in a negative effect on a third party who is not involved in the transaction or decision.