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.

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Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Periodic Inventory System

An accounting method where inventory values and cost of goods sold are determined at the end of an accounting period.

Merchandise Inventory

refers to the goods available for sale to customers in the retail and wholesale industries.

Cost of Merchandise Sold

The total expense incurred by a business to sell goods over a period, including the cost of acquiring or manufacturing those goods.