Which of the Following Is Not a Characteristic of a Job

question 91

Multiple Choice

Which of the following is not a characteristic of a job order costing system?

• A) It accumulates cost for each department within the factory.
• B) It provides a separate record for the cost of each quantity of product that passes through the factory.
• C) It is best suited for industries that manufacture custom goods.
• D) It uses only one work in process account.

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.

Marginal Private Benefits

The additional benefit received by consumers or producers from consuming or producing one more unit of a good or service.

Negative Externalities

Unintended adverse effects on third parties not involved in an economic transaction, like pollution.