Which Is NOT a Difference Between the Job-Order Costing System

question 88

Multiple Choice

Which is NOT a difference between the job-order costing system and the process costing system?

• A) They accumulate their costs to different cost objectives.
• B) The number of work-in-process accounts is different.
• C) One does not use the finished goods account.
• D) all of the above.

---

Definitions:

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable parties in an arm's length transaction.

Book Value

This is the net value of a company's assets minus its liabilities, as recorded on the balance sheet.

FIFO Inventory Method

An inventory valuation method where the first items acquired are the first ones sold, used to determine the cost of goods sold and ending inventory.

Net Income

Net income is the total earnings of a company after subtracting all expenses, including taxes, costs, and losses, from its total revenue, indicating its profit.