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What is a circular flow diagram and what does it demonstrate?
Job Order Cost System
An accounting system used to track costs associated with specific jobs or orders, including materials, labor, and overhead.
Cost Performance
A measure of the efficiency of budget management, comparing the budgeted cost of work performed with the actual cost.
Factory Overhead
Costs associated with operating a factory that are not directly tied to a specific product or activity, such as maintenance, utilities, and salaries for management.
Work in Process
Work in Process (WIP) inventory includes partially finished goods that are still undergoing the manufacturing process and are not yet ready for sale to customers.
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