Management can use job cost information for each of the following EXCEPT:

Question

Quizplus · Accepted Answer

Job cost information is used to determine the cost of producing each product or service. This information can be used by management to assess the profitability of each product type and use the cost information to determine the bid price for custom orders. However, job cost information is not used to determine the balance in raw materials inventory or prepare the financial statements. These tasks would involve other types of accounting information, such as inventory management and financial accounting, respectively.

Management Can Use Job Cost Information for Each of the Following