Question

Under a job order cost system, costs are accumulated for: Multiple Choice Each individual unit produced. Each job supervisor. Each batch of production, known as a job or lot. Each department in the production cycle.

Answer 1

Answer:

The correct answer is letter "C": Each batch of production, known as a job or lot.

Explanation:

Job order cost systems are used to accumulate the cost per unit of items that are different enough, each one having significant costs. Under this costing system each item produced is given its direct material costs, labor costs, and overhead. Clothing, food, and aircraft manufacturing companies use the job order cost system.

Unitary costs are accumulated per batch of productions under this type of costing system.