Which of the Following Is a Reason Why a Job

question 189

Multiple Choice

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

• A) The cost incurred for each job will differ as per the order specifications.
• B) The direct costs incurred for each job are the same, only indirect costs vary.
• C) The raw materials used have already been accounted for using process costing.
• D) Custom furniture manufacturers produce large quantities of similar products.

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Definitions:

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.

Caste System

A form of social stratification in which status is determined by one’s family history and background and cannot be changed.

Social Mobility

The movement of individuals or groups within the hierarchical system of social classes.