Which of the Following Is a Characteristic of Job-Order Costing

question 47

Multiple Choice

Which of the following is a characteristic of job-order costing?

• A)Products produced are identical in nature
• B)Unit cost is computed by dividing process costs of the period by the units produced in the period.
• C)Unit cost is computed by dividing total job costs by units sold on that job.
• D)The cost of one job is typically different from that of another job.

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Definitions:

Manufacturing Overhead

All indirect costs related to manufacturing, such as utilities, maintenance, and depreciation of equipment, not directly tied to the production of goods.

Job-Order Costing

A method of costing that collects costs for each individual job or batch of goods produced, as opposed to process costing.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are higher than the actual overhead expenses incurred.

Raw Materials

The basic materials from which products are made, which have not yet been processed or used in manufacturing.