The flow of costs in a job order cost system
A) involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.
B) cannot be measured until all jobs are complete.
C) measures product costs for a set time period.
D) generally follows a LIFO cost flow assumption.

Question

Quizplus · Accepted Answer

In a job order cost system, costs are accumulated as they are incurred and then assigned to specific jobs or products. This allows for the tracking of costs for each individual job or product, rather than just for the entire production process. The flow of costs begins with the raw materials that are used to manufacture the product, then moves on to the direct labor costs incurred in production, followed by the overhead costs. Ultimately, the accumulated costs are assigned to the specific job or product based on their usage.

The Flow of Costs in a Job Order Cost System