Question

Which one is incorrect regarding cost flows through a job-order costing system. a. Costs are averaged...

Which one is incorrect regarding cost flows through a job-order costing system.

a. Costs are averaged for all jobs produced within a department

b. product costs are accumulated separately by job.

c. the job-order costing system is patterned after the physical flow of products as they move through the production process.

d. the three inventory accounts used are maintained on a perpetual basis

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Homework Answers

Answer #1

Your required answer is option D i.e. The three inventory accounts used are maintained on a perpetual basis

Explanation:

In case of job-order costing sometime costs are averaged for common department if there is no any cost centre available and secondly product costs are accumulated seperately to find the job costing and thirdly the job-order costing system is patterned after the physical flow of products as they move through the production process but there is not anything like three inventory however job costing is maintened on a perpetual basis but there is nothing like three inventory.

I hope this clear your doubt.

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