Asked by hannah mazzeo on May 08, 2024
Verified
Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.
Job Order Cost System
A job order cost system is an accounting method that tracks costs and revenues by specific jobs and assigns costs to products based on the jobs.
- Acquire knowledge on the modification and utilization of job order costing in service industries.
- Understand the function of job order costing in the management and control of organizational expenses.
Verified Answer
CD
Charles DavisMay 14, 2024
Final Answer :
True
Explanation :
Service organizations often use job order costing to track the costs of specific projects or jobs and can bill customers based on milestones or time periods (weekly or monthly), regardless of whether the job is fully completed.
Learning Objectives
- Acquire knowledge on the modification and utilization of job order costing in service industries.
- Understand the function of job order costing in the management and control of organizational expenses.