A manufacturing ﬁrm produces goods in accordance with customer speciﬁcations, commencing production upon receipt of a purchase order.To accumulate the cost of each order, the company would use a:
A)job-cost record.
B)cost allocation matrix.
C)production log.
D)overhead sheet.
E)manufacturing cost record.

Question

Quizplus · Accepted Answer

A job-cost record is used to accumulate the cost of each order or job. It tracks direct materials, direct labor, and manufacturing overhead costs associated with each job separately. This allows the company to determine the cost of goods sold for each job and make pricing decisions accordingly.

A Manufacturing ﬁRm Produces Goods in Accordance with Customer Speciﬁcations