CAF-5 · Chapter 6 · Question 3 of 10
What is the primary purpose of a "Job Order Cost Sheet" (or Job Cost Card)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To record all manufacturing costs (direct and indirect) and absorbed non-manufacturing costs for a specific job.
Explanation
A job order cost sheet or card is a form prepared for a job that records all manufacturing costs (both direct and indirect) and also non-manufacturing costs absorbed to that specific job.
More Job and Service Costing MCQs
- Q5If materials are issued from the store to be used as general maintenance supplies on the factory floor (indirect materials) rather than…
- Q6When production overheads are absorbed into the cost of a specific job based on a predetermined rate, which account is credited?
- Q7A specific job (Job 453) incurs direct materials of Rs. 10,000, direct labour of Rs. 6,000, and direct expenses of Rs. 4,000. Production…
- Q8When a job is completed and the goods are transferred to the finished goods warehouse awaiting the customer's disposition, what is the…
- Q9Which of the following is a specific defining characteristic of "Service Costing" compared to traditional product costing?