Which of the Following Statements About Job-Order Cost Sheets Is

question 102

Multiple Choice

Which of the following statements about job-order cost sheets is true?

• A)All job-order cost sheets serve as the general ledger control account for Work in Process Inventory.
• B)Job-order cost sheets can serve as subsidiary ledger information for both Work in Process Inventory and Finished Goods Inventory.
• C)If material requisition forms are used,job-order cost sheets do not need to be maintained.
• D)Job-order cost sheets show costs for direct material and direct labor,but not for manufacturing overhead since it is an applied amount.

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Definitions:

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and their transportation costs as soon as the goods leave the seller's location.

Freight Costs

Charges associated with the transportation of goods from one location to another, often considered part of inventory costs in accounting.