The Cost of Preparing Equipment and Facilities So They Can

question 18

Multiple Choice

The cost of preparing equipment and facilities so they can be used to produce a particular product or component is known as

• A)ordering costs.
• B)setup costs.
• C)carrying costs.
• D)inventory costs.

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Definitions:

Job-Order Costing

A cost accounting system used to accumulate costs of individual jobs, typically used in manufacturing firms that produce unique products or jobs.

Direct Labor Costs

The total cost of wages, benefits, and taxes for employees who are directly involved in the production of goods or services.

Cost Of Goods Manufactured

The manufacturing costs associated with units of product that were finished during the period.

Job-Order Costing

An accounting method used to track costs and revenues by specific jobs or orders, commonly used in industries with customized products.