Job Costing in Service Industries Uses Recording Procedures and Accounts

question 109

Multiple Choice

Job costing in service industries uses recording procedures and accounts similar to those illustrated in the chapter except for:

• A)Direct labor.
• B)Overhead costs.
• C)Direct materials.
• D)Cost drivers.

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Definitions:

Basing-Point Pricing

A pricing system where the delivered price of goods is determined from a specific geographic location or "base point".

FOB Origin Pricing

A pricing term indicating that the buyer assumes shipping costs from the seller's location and takes ownership of the goods once shipped.

Freight Expenses

Costs associated with transporting goods, including shipping, handling, and insurance fees.

Multiple-Zone Pricing

Multiple-Zone Pricing is a pricing strategy where a business charges different prices for its products or services in different geographic areas, based on factors like transportation costs and local market conditions.