What is characteristic of job-order costing?

Question

Quizplus · Accepted Answer

Job-order costing is a system used by companies that produce unique or custom products, therefore the costs are accumulated by job or specific order. The document for accumulating manufacturing costs is the cost sheet, where all the direct and indirect costs related to a particular job are recorded. Option A is incorrect as costs are collected by job, not department. Option B is incorrect as job-order costing is used for customized products, not homogeneous ones. Option C is also incorrect as time cards are used for tracking employee payroll, not for accumulating the manufacturing costs of each job.

What Is Characteristic of Job-Order Costing