Job Costing Information Can Be Used To

question 126

Multiple Choice

Job costing information can be used to:
I. Report inventory and cost of goods sold on financial statements
II. Estimate average costs for future jobs
III. Report the costs of marketing for a product

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

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Definitions:

Service Firms

Companies that provide intangible products or services to customers, rather than physical goods.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products or job orders, based on a set formula.

Machine Hours

A unit of measure representing the operational time of a machine, used in allocating costs based on how long machines are used in the production process.

Overhead

The indirect costs or expenses related to the operation of a business that are not directly tied to a specific product or service.