What is characteristic of job-order costing?
A)It is used in firms that produce homogeneous products.
B)The total cost of each job is accumulated on the time card.
C)The document for accumulating manufacturing costs is the cost sheet.
D)Costs are collected by department.

Question

Quizplus · Accepted Answer

Job-order costing is a method used by companies that produce customized and unique products or services. Hence, it requires the accumulation of all costs incurred in the production of a particular job or order, which is done using a document called a cost sheet. Option A is incorrect because job-order costing is used in firms that produce customized products, not homogeneous ones. Option B and D are also incorrect because costs are accumulated based on the job or order, not on a time card or department.

What Is Characteristic of Job-Order Costing