Job Costing ________

question 39

Multiple Choice

Job costing ________.

• A) cannot be used by the service industry
• B) records the flow of costs for each product or service
• C) allocates an equal amount of cost to each unit made during a time period
• D) is used when each unit of output is identical

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Definitions:

Per Unit

A term used to denote the cost or price of a single item or measure of a service or product.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid for a specific business.

Mixed Costs

Expenses that have both fixed and variable components, changing with the level of production or sales activity but not in direct proportion.

Differential Costs

The difference in cost between two alternative decisions or changes in levels of operation.