Which of the Following Is Not a Reason a Service

question 78

Multiple Choice

Which of the following is not a reason a service firm would use a job order costing system?

• A) to help control costs
• B) to determine client billing
• C) to determine department costs within the firm
• D) to determine profit

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Definitions:

Fixed Overhead Volume Variance

A financial metric indicating the difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate per unit.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, which results in a variance in fixed overhead costs allocated per unit.

Overhead Applied

The portion of manufacturing overhead costs allocated to individual products or job orders based on a predetermined overhead rate.

Products

Goods or commodities that are manufactured or refined for sale.