What Is a Difference Between the Job-Order Costing System and the Process

question 83

Multiple Choice

What is a difference between the job-order costing system and the process costing system?

• A)One does not use a raw materials account.
• B)The number of work-in-process accounts is different.
• C)One does not use the finished goods account.
• D)They both distribute the costs among equivalent units.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to market value.

Premium

An amount paid in excess of the nominal or face value, often in relation to insurance or bonds.

Tax Deductible

Expenses or payments that can be subtracted from gross income to reduce the amount of income subject to taxation.

Term Bonds

Bonds that have a fixed maturity date on which the principal amount is due to be paid back to investors in full.