Job Costing Fundamentals Quiz

Job costing is accounting which tracks the costs and revenues by 'job' and enables standardized reporting of profitability by job.

A job can be defined as a specific project done for one customer, or a single unit of product manufactured, or a batch of units of the same type that are produced together.

Direct expenses such as direct labor and direct materials, and overhead costs like indirect labor, warranty costs, and quality control are tracked in job costing for a manufacturing setting.

<p>Job costing tracks costs by job or batch, while process costing tracks costs by process.</p> Signup and view all the answers

<p>A job profitability report provides an overall profit &amp; loss statement specific to each job number.</p> Signup and view all the answers

<p>A general ledger is a bookkeeping ledger that holds accounting data aggregated from subledgers and journals. It holds financial and non-financial data for an organization.</p> Signup and view all the answers

<p>The general ledger is classified into account categories such as income, expense, assets, liabilities, and equity. It includes accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects.</p> Signup and view all the answers

<p>The main categories of the general ledger are assets, liabilities, owner's equity, revenue, expenses, gains, and losses.</p> Signup and view all the answers

<p>Subledgers provide additional details for accounts such as cash, accounts receivable, accounts payable, etc. They are used to further subdivide the main categories of the general ledger.</p> Signup and view all the answers

<p>The extraction of account balances is called a trial balance.</p> Signup and view all the answers