Discussion Questions
Q5-1 If has been said that an actual product cost does not exist, in the sense of absolute authenticity and verifiability. Why?
Q5-2 what is the primary objective in job order costing?
Q5-3 What is the rationale supporting the use of process costing instead of job order costing for product costing purposes?
Q5-4 Describe the uses of a job order cost sheet.
Q5-5 What is the function of the work in process account in job order costing?
Q5-6 How is control over prime costs achieved in job order costing?
Q5-7 Distinguish between actual and applied factory overhead.
Q5-8 Some service businesses use job order costing. What characteristic of a service business makes it likely that job order costing will be used?