An important feature of a job order cost system is that each job
A) must be similar to previous jobs completed.
B) has its own distinguishing characteristics.
C) must be completed before a new job is accepted.
D) consists of one unit of output.

Question

Quizplus · Accepted Answer

A job order cost system is used in situations where each job is unique and has its own distinguishing characteristics. This system allows for the identification and accumulation of costs for each individual job, which is necessary for accurate costing and pricing decisions. Option A is incorrect as each job is unique and may not necessarily be similar to previous jobs completed. Option C is incorrect as it is not necessary for one job to be completed before a new job is accepted. Option D is also incorrect as a job can consist of multiple units of output.

An Important Feature of a Job Order Cost System Is