A Job Order Cost System and a Process Cost System

question 121

True/False

A job order cost system and a process cost system are two alternative methods for valuing inventories.

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Definitions:

Raw Materials Inventory

Items and components stored that are used in the manufacturing process to create finished goods.

Stores Ledger Cards

A record-keeping tool that tracks the quantity and value of materials on hand in a storeroom.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, maintenance, and factory equipment depreciation.

Subsidiary Account

An individual account that records transactions related to a specific component, often used within a larger accounting system.