Management can use job cost information for each of the
following except
A.determining cost of goods sold.
B.determining the profitability of different jobs.
C.all of the listed choices are possible uses of job cost
information.
D.bidding on custom jobs.
Answer
Option C is the answer
Job order costing is used when each output expected is unique.
Simply put, each unit to be produced is different from other. All
the costs related to each unit/job are recorded separately.
This type of costing is used by Custom furniture manufacturers,
accounting firms, law firms etc.
It enables determining the appropriate cost of goods sold/cost
of service provided. It helps in determining the profitability of
different jobs and it is economically benifical to take up jobs
where the revenues to be generated are higher than costs to be
incurred.
