Describe How Accumulation of Costs in a Job-Order Cost System

question 71

Essay

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

---

Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Marginal Study Time

The additional benefit or improvement in performance obtained from studying for one more unit of time.

Marginal Returns

The additional output or benefit received from producing one more unit of a good or service.