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(n):
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 specifically designed for accumulating the costs of producing goods or services in accordance with customer specifications. This method is commonly used in manufacturing firms to track direct and indirect costs associated with each production order. Therefore, option A is the correct answer. The other options are not commonly used for accumulating the costs of production orders.

A Manufacturing Firm Produces Goods in Accordance with Customer Specifications