In Job Order Costing,the Basic Document for Accumulating the Cost

question 16

Multiple Choice

In job order costing,the basic document for accumulating the cost of each job is the:

• A)Job cost sheet.
• B)Requisition sheet.
• C)Purchase order.
• D)Invoice.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the production process begins based on estimated costs and activity levels.

Job-Order Costing

An accounting method used to assign costs to specific products or jobs, typically utilized in custom or specialized production.

Direct Labor-Hours

A measure of the labor directly involved in the manufacturing or production process, calculated in hours.

Machine-Hours

A measure of production time, indicating how many hours machines were operated during a certain period, often used for allocating manufacturing overhead.