The Flow of Costs in a Job Order Costing System

question 42

Multiple Choice

The flow of costs in a job order costing system ________.

• A) cannot be determined until all jobs are complete
• B) transfers all costs to manufacturing overhead
• C) involves accumulating costs and then assigning costs to jobs
• D) includes the major steps of accumulating and amortizing

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Definitions:

Vertical Marketing Systems

A coordinated approach to distribution and marketing designed to ensure that products or services flow smoothly from the producer to the consumer with the involvement of various intermediaries.

Channel Economies

The cost savings and efficiency gains derived from using effective distribution channels to deliver products or services to consumers.

Centrally Coordinated

Managed or organized from a single, central point, often referring to administrative or operational activities.

Contractual Vertical Marketing System

A coordinated marketing system among businesses at different levels of the supply chain, established through contracts to maximize efficiency and profitability.