The flow of costs in a job order costing system ________.

Question

Quizplus · Accepted Answer

In job order costing system, costs are accumulated for each job and then assigned to that specific job. This involves identifying direct materials, direct labor, and manufacturing overhead costs related to each job. Once all costs have been assigned to a job, a unit cost can be calculated. Therefore, Option C is the correct answer. Option A is incorrect as the flow of costs can be determined as costs are accumulated. Option B is incorrect as not all costs are transferred to manufacturing overhead, only indirect costs are. Option D is incorrect as amortizing is not a major step in job order costing.

The Flow of Costs in a Job Order Costing System