Indicate Whether Each of the Following Statements About Job-Order Cost

question 72

Short Answer

Indicate whether each of the following statements about job-order cost systems is true or false.In a job-order cost system, the costs of a job are accumulated on a job cost sheet.Materials requisition forms are prepared by the company's purchasing department to order raw materials from a supplier.A materials requisition form is a source document used in preparing a job cost sheet.A materials requisition form is usually prepared and delivered electronically.A manufacturer's production department is responsible for preparing job cost sheets.

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Definitions:

Personal Liability

the legal responsibility of an individual to satisfy debts or obligations incurred, using personal assets if necessary.

Partnership

A commercial arrangement in which a business is co-managed and operated by at least two people, following conditions and goals outlined in a Partnership Agreement.

Estoppel

A legal principle that prevents someone from arguing something contrary to a previous position or statement that was relied upon by others.

Negligence

The failure to exercise the care that a reasonably prudent person would under similar circumstances, resulting in unintended harm to others.