A Materials Requisition in a Job-Order Cost System Is Used

question 20

Multiple Choice

A materials requisition in a job-order cost system is used as a:

• A) A source document for assigning costs to individual departments.
• B) A subsidiary account for recording the materials used on each job.
• C) Request form for getting the necessary materials from the materials store room.
• D) A means of ordering materials from outside suppliers.

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Definitions:

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, granting holders a claim on the company's assets and earnings.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Derivative Securities

Financial instruments whose value is derived from the value of an underlying asset, such as futures, options, and swaps.

Consumer Durables

Goods that are not consumed with their use and can be used over a longer period, such as appliances, vehicles, and electronics.