Job Order Cost Accounting Systems Can Be Used Only for Companies

question 156

True/False

Job order cost accounting systems can be used only for companies that manufacture a product.

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Definitions:

Inventory Cost

The total cost incurred to procure, produce, and store inventory, including purchase price, production, and handling costs.

Gross Profit

the difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Cost Of Goods Sold

The immediate expenses directly related to creating a company's sold products, covering both labor and materials costs.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after all sales and purchases have been accounted for.