Question

The job order cost system for a service business includes all of the following except a.materials and supplies inventory. b.cost of services. c.overhead. d.work in process.

Answer 1

The job order cost system from a service business excludes material and supplies inventory. Thus, the correct answer is A.

What is a job order cost system?

Customers who order little where each batches of goods use a mechanism called job order costing. With the help of this system, the cost of each product is determined.

In this system, it is to make sure that it is affordable enough for customers to buy while also generating a profit for the business. It includes cost of services applied, overhead and work in progress.

Therefore, the option A materials and supplies is the appropriate answer.

Learn more about job costing system, here:

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