Job-order costs are most useful for:
A)Controlling indirect costs of future production.
B)Determining inventory valuation using LIFO.
C)Determining the cost of a speciﬁc project.
D)Estimating the overhead costs included in transfer prices.
E)Determining costs by averaging the costs of all production.

Question

Quizplus · Accepted Answer

Job-order costs are designed to determine the cost of a specific project. This system tracks the direct materials, direct labor, and overhead costs associated with a particular job or project. It allows for accurate cost allocation and helps ensure that projects are completed on budget.

Job-Order Costs Are Most Useful For