Characteristics that job order costing and process costing have in common include all of the following except:
A)The use of predetermined factory overhead rates.
B)Each can be used by service firms.
C)The costs of materials and labor are charged to the departments where they are incurred.
D)The primary objective is to complete a unit cost for products.

Question

Quizplus · Accepted Answer

Job order costing and process costing both use predetermined factory overhead rates (A) and can be used by service firms (B), with their primary objective being to compute a unit cost for products (D). However, in job order costing, costs are traced to individual jobs rather than departments, which is a key difference from process costing where costs are accumulated by department (C).

Characteristics That Job Order Costing and Process Costing Have in Common