Use of the Same Accounting Methods Over Time Facilitates

question 59

Multiple Choice

Use of the same accounting methods over time facilitates:

• A) disclosure
• B) prudence
• C) comparability
• D) reliability.

---

Definitions:

Job-Order Costing

A financial tracking approach designed to monitor expenses and determine the profit margins of specific projects or groups.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead incurred.

Underapplied Overhead

A situation where allocated overhead costs are less than the actual overhead incurred.

Job-Order Costing

A costing method used to calculate the costs associated with producing specific orders or batches, where the costs for materials, labor, and overhead are compiled and assigned to each job individually.