In a Job-Costing System the Cost Object Is an Individual

question 168

True/False

In a job-costing system the cost object is an individual unit, batch, or lot of a distinct product or service.

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Definitions:

Unique Product

A product that is distinctive and has no exact substitutes in the market, often giving its producer a competitive advantage.

Unit Price

The cost per unit of a product or service, which allows consumers to compare prices and value among different items.

Average Revenue

The revenue earned per unit of output sold, calculated by dividing total revenue by the number of units sold.

Market Structures

The organizational and other characteristics of a market, including the level of competition, product differentiation, and the ease of entry and exit, which determine the nature of pricing and output decisions.