Which statement best describes a characteristic of the job-order cost sheet?
A) It contains information about special orders only.
B) It is subsidiary to the Cost of Goods Sold account.
C) It contains only the materials information pertinent to a job.
D) It is the primary document for accumulating all costs related to a particular job.

Question

Quizplus · Accepted Answer

The job-order cost sheet is the primary document for accumulating all costs related to a particular job. It includes direct materials, direct labor, and manufacturing overhead costs associated with the job. Option A is incorrect as the job-order cost sheet includes all kinds of orders, not just special orders. Option B is incorrect as the job-order cost sheet is not subsidiary to the Cost of Goods Sold account, but rather is used to determine the cost of goods sold. Option C is incorrect as the job-order cost sheet includes all of the costs associated with the job, not just materials.

Which Statement Best Describes a Characteristic of the Job-Order Cost