In a Job Order Cost Accounting System, the Journal Entry

question 112

Multiple Choice

In a job order cost accounting system, the journal entry to record the flow of direct labor costs into production consists of a

• A)debit to Factory Overhead and a credit to Work in Process
• B)debit to Finished Goods and a credit to Wages Payable
• C)debit to Work in Process and a credit to Wages Payable
• D)debit to Factory Overhead and a credit to Wages Payable

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Customization

The process of modifying products or services to meet the specific requests or requirements of individual customers.

Postponement

A strategy in supply chain management involving delaying product customization or distribution until customer orders are received to reduce inventory costs.

Demand Variability

Fluctuations in customer demand over a period, impacting inventory levels and production planning.