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.

---

Definitions:

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

LIFO Method

A method of inventory valuation where the last items added to inventory are the first ones to be used or sold.

FIFO Method

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "First-In, First-Out."

Inventory Valuation

The method of calculating the cost associated with the inventory held by a business, influencing financial statements and taxation.