Final Answer:
A temporary cost object that assigns the production order number to that cost object is known as a job.
Step-by-step explanation:
In accounting and cost management, a job is a temporary cost object that is used to track the costs associated with a specific production order. When a company receives an order for a unique product or service, it issues a job order to identify and allocate the costs related to that particular production. The job is typically assigned a unique identifier, often the production order number, to distinguish it from other jobs in the system.
The use of jobs allows businesses to trace direct and indirect costs associated with a specific production order, providing a detailed breakdown of expenses related to a particular project or customer order. This level of cost tracking is especially valuable in industries where customized or unique products and services are common. The temporary nature of a job implies that once the production is complete, and the associated costs are accounted for, the job is closed. This approach enables accurate costing and helps organizations evaluate the profitability of each specific project or order.
In summary, a job serves as a temporary cost object that plays a crucial role in cost accounting, allowing businesses to allocate and track costs associated with specific production orders. It provides a detailed and organized way to manage costs, aiding in decision-making, pricing strategies, and overall financial analysis within an organization.