A Job Order Cost System Traces Direct Materials Cost to a Particular

question 43

Multiple Choice

A job order cost system traces direct materials cost to a particular job by means of:

• A)Materials requisitions.
• B)A production budget.
• C)The Materials Inventory controlling account.
• D)A debit to the job cost sheet for the job.

Understand the implications of FOB (Free on Board) terms on shipping responsibilities and costs.

Recognize the role of government regulation in preventing unfair pricing practices such as price fixing and price discrimination.

Identify and evaluate the impacts of pricing decisions on both buyers and sellers in different geographical locations.

Identify key computer components and their functions.

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Definitions:

Direct Labor

Labor costs directly attributable to the production of goods, including wages of workers who are actively involved in the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute an integral part of the finished product.

Unassembled Product

A product that is sold in parts and requires assembly by the customer or retailer before it can be used.

Assembled Product

A product that has been put together from various parts or components, ready for sale or use.