Which statement describes a characteristic of costing?
A) Direct materials are not included in the job cost.
B) Actual overhead costs always enter the Work-in-Process Inventory account.
C) The cost of a job includes direct materials, direct labour, and applied overhead.
D) When a job is complete, it must leave Cost of Goods Sold and be entered into Finished Goods Inventory or Work-in-Process Inventory.

Question

Quizplus · Accepted Answer

Costing involves determining the cost of a job, which includes direct materials, direct labor, and applied overhead. This total cost is then used to calculate the selling price and determine the profitability of the job.

Which Statement Describes a Characteristic of Costing