Which of the following is true of work orders?
A)They initiate the marketing and sale of the products of each batch.
B)They collect selling costs for each batch of products.
C)They are used to collect production costs for each batch.
D)They are used to identify direct materials.

Question

Quizplus · Accepted Answer

Work orders are used to collect information about production costs for each batch. This includes direct materials, direct labor, and manufacturing overhead costs. Work orders are issued as instructions for the production process and are used to track the progress of the job as it moves through the manufacturing process. Work orders do not initiate the marketing and sale of products or collect selling costs for each batch.

Which of the Following Is True of Work Orders