Which of the Following Is a Characteristic of a Job

question 62

Multiple Choice

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

• A)Uses several Work in Process Inventory accounts
• B)Uses job cost cards to keep track of each job in process
• C)Assigns costs to specific processes
• D)Recognizes cost of materials when products are sold

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Definitions:

Break-Even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss, and initial investments begin to be recovered.

Dollar Sales

The total monetary value of sales transactions within a specific period, expressed in dollars.

Profit and Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year, also known as an income statement.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or services based on the actual activities and resources used in the production or delivery process.