Which of the following is a characteristic of a job order costing system?
A)Uses several Work in Process Inventory accounts
B)Uses job cost cards to keep track of each job in process
C)Assigns costs to specific processes
D)Recognizes cost of materials when products are sold

Question

Quizplus · Accepted Answer

A job order costing system uses job cost cards to keep track of each job in process. The system also assigns direct and indirect costs to specific jobs, rather than processes, and typically uses a single Work in Process Inventory account to track all jobs in progress. The system does not recognize the cost of materials when products are sold, as this is a feature of a periodic inventory system rather than a job order costing system.

Which of the Following Is a Characteristic of a Job