Which of the Following Is Not a Characteristic of a Job

question 91

Multiple Choice

Which of the following is not a characteristic of a job order costing system?

• A) It accumulates cost for each department within the factory.
• B) It provides a separate record for the cost of each quantity of product that passes through the factory.
• C) It is best suited for industries that manufacture custom goods.
• D) It uses only one work in process account.

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Definitions:

Straight-Line Depreciation

A technique for determining an asset's depreciation, presuming that the asset will depreciate by a consistent value annually throughout its projected useful life.

Incremental Sales

The additional revenue generated from a particular business action or decision, beyond existing sales.

Straight-Line Depreciation

A process for dividing the cost of an asset equally over the duration of its usability.

After-Tax Discount Rate

This rate is used to discount future cash flows to their present value, considering the effect of taxes.