Managers Use Judgment in Job Costing Systems to Decide

question 36

Multiple Choice

Managers use judgment in job costing systems to decide:

• A) Whether to use any source documents
• B) Which direct costs to trace to a job
• C) Which indirect costs to trace to a job
• D) Which fixed costs to trace to a job

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Definitions:

Charge Customer

To bill a customer for goods or services provided, creating an obligation for payment.

Accrued Interest

Interest that has been earned but not yet received or recorded in the accounts.

Note Receivable

A written promise or obligation for the payment of a certain sum of money to the holder on demand or at a specified future date.

Interest Receivable

The revenue from interest that has been earned but not yet received, recorded as an asset on the balance sheet.