In a job order cost system, factory wage expense is debited to work in process inventory.
Explanation:
The costing of job orders is a system for assigning and accumulating production costs for a single production unit. When different produced items differ enough and each has considerable costs, the job order costing system is used.
The costs of each jobs include direct materials, direct work and production overhead in order to summarize the cost system for jobs. While the product is being produced, the process inventory includes direct materials and direct labor costs.
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Answer:
The correct answer is letter "B": property rights must be clearly assigned to the parties involved in the dispute.
Explanation:
Named after British lawyer and economist Ronald Coase (<em>1910-2013</em>) the Coase Theorem states when there are competitive markets and no transaction costs bargaining will lead to an efficient and mutually beneficial outcome. The theorem affirms that when property rights are defined and divided, parties will gravitate to the most efficient and beneficial outcome.
