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As related to a job order costing system, answer the following short questions:
a. What is a job order costing system? Identify three kinds of companies that would use such as system.
b. What is a job order?
c. What is the purpose of a job order cost card? Identify the kinds of information recorded on it.
Loss on Sale
The financial loss incurred when the selling price of an asset is less than its carrying amount on the books.
Patent Amortization
The systematic reduction of the recorded cost of a patent over its useful life to reflect its consumption or expiration.
Operating Section
The segment of a financial statement that details revenues and expenses directly related to the core business operations.
Net Income
Net Income, or net profit, is the total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenue.
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