When Perpetual Inventories Are Maintained in a Job Order Cost

question 42

Multiple Choice

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents:

• A)the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs.
• B)the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete.
• C)only the actual costs for the labor and materials used in uncompleted jobs.
• D)only the actual costs for the labor and materials used in completed jobs.

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Definitions:

Efficient Use

The practice of using resources in a way that maximizes productivity while minimizing waste.

Objectives

Specific, measurable goals that are aimed to be achieved within a certain timeframe.

Strategy Plan

A comprehensive plan that outlines an organization's direction, objectives, and the actions required to achieve these objectives.

Corporate Culture

The collective values, beliefs, attitudes, and behaviors that characterize an organization and influence its members.