In a Job Order Cost Accounting System Used by a Service

question 189

Multiple Choice

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

• A) materials
• B) direct labor
• C) rent
• D) supplies

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Definitions:

Journal Entries

The records of financial transactions in the accounting system that document the effects on accounts in a double-entry bookkeeping system.

Dividend Yield

A metric showing the annual dividends a company distributes in comparison to its stock price.

Preferred Shareholders

Investors who own preferred shares in a company, usually entitled to dividends before common shareholders and with certain other financial rights.

Market Price

The current price at which an asset or service can be bought or sold in a market.