Which of the following is a characteristic of job-order costing?
A)Products produced are identical in nature
B)Unit cost is computed by dividing process costs of the period by the units produced in the period.
C)Unit cost is computed by dividing total job costs by units sold on that job.
D)The cost of one job is typically different from that of another job.

Question

Quizplus · Accepted Answer

Job-order costing is used when products or services are unique, and therefore the cost of one job can differ from the cost of another job. Option A refers to process costing, where products are identical in nature. Option B describes how process costing calculates unit costs, not job-order costing. Option C refers to calculating the cost of goods sold on a specific job, not the unit cost in job-order costing.

Which of the Following Is a Characteristic of Job-Order Costing