Which of the following statements is false regarding job-order costing?
Which of the following statements is false regarding job-order costing?
Multiple Choice
It is used for manufacturing companies, but not service companies.
It can be used to calculate a job's unit product cost.
It accumulates each job's costs on a job cost sheet.
It is used in situations where many different products, each with unique features, are produced each period.
In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
True or False
Homework Answers
Solution 1:
The false statement regarding job order costing is "It is used for manufacturing companies, but not service companies"
Hence first option is correct.
Solution 2:
False, In the excel or spreadsheet approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the cash column and a decrease in the accounts payable column.
Add Answer to:
Which of the following statements is false regarding job-order costing?
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Which of the following statements regarding job-order costing and process costing is FALSE? Multiple Choice Job-order...
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Source Documents and Cost Flows in Job-Order Costing In job-order costing, the individual costs of each job must be kept track of separately. The costs of each job are kept track of on a job-order cost sheet. The job-order cost sheets are subsidiary records to the account. Each job order cost sheet includes the unique name assigned to the job (e.g., Smith House for a construction firm, or 2014-001 for the first job of 2014 for a custom framing shop)....
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Which of the following is not a difference between job costing for service firms and job costing for manufacturing companies? Multiple Choice C) Service is generally use fewer direct m e a n manufacturing companies O Service for overhoed accounts have slightly different te leg. Applied Service Overhead O Service firms finished jobs are charged to Cost of Services Billed instead of Cost of Goods Sold O Services costs are immediately expensed since all work is completed during a period
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
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