Job Costing May Only Be Used By

question 65

Multiple Choice

Job costing may only be used by:

• A)merchandising companies.
• B)service companies.
• C)manufacturing companies.
• D)All of these may use job costing.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Operating Activity

Activities directly related to the day-to-day operations of a business, including sales of products or services, and expenses.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.