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Which of the following is not a characteristic of a job order costing system?
a. It provides a separate record for the cost of each quantity of product that passes through the factory.
b. It accumulates cost for each department within the factory.
c. It uses only one work in process account.
d. It is best suited for industries that manufacture custom goods.
♦ Relevant knowledge
When it comes to cost accounting also known as the cost of a job is commonly referred to by the name of job costing is a method of tracking costs and revenues are tracked on the job. This technique is typically used by businesses that offer to custom orders and other services.
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Solution:
“b. It accumulates costs for each factory department within the factory” is not a characteristic for a job order pricing system, as cost is accumulated for each of the departments under process costing.