An Important Feature of a Job Order Cost System Is

question 177

Multiple Choice

An important feature of a job order cost system is that each job

• A) must be similar to previous jobs completed.
• B) has its own distinguishing characteristics.
• C) must be completed before a new job is accepted.
• D) consists of one unit of output.

---

Definitions:

Allowance for Doubtful Accounts

A contra asset account that represents estimated uncollectible amounts from customers, reducing the gross receivables to their net realizable value.

Bad Debts Expense

The cost recognized when a company determines that a customer's loan or receivable account is uncollectible.

Allowance Method

An accounting technique used to estimate and adjust accounts receivable for amounts that are unlikely to be collected.

Carrying Value

The value of an asset as shown on the balance sheet, representing its original cost minus any accumulated depreciation, impairment, or amortization.