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Discuss How Job Order Cost Information Is Used in Decision

question 68

Essay

Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?


Definitions:

Fair Value Approach

An accounting method that measures assets and liabilities at estimates of their current market value rather than historical cost.

Quoted Prices

The prices of securities that are publicly listed and available for investors to buy and sell.

Active Markets

Markets where transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 1 Input

denotes the highest-quality and most transparent valuation inputs for financial reporting, such as quoted prices in active markets for identical assets or liabilities.

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