Question

Which of the following characteristics does not apply to job order cost accounting?

A. ims to compute the cost per unit of product.
B. Cost object is a job.
C. Equivalent units of production.
D. Use of job cost sheets.
E. Use of a single Work in Process Inventory account.

Answer 1

The characteristic that does not apply to job order cost accounting is equivalent units of production, which is a concept used in process costing where production is ongoing and homogenous, not in job order costing where each job is unique.

Step-by-step explanation:

The characteristic that does not apply to job order cost accounting is C. Equivalent units of production. This concept is used in process costing, not job order costing. Job order costing aims to compute the cost per unit of a product or service (A), uses a cost object known as a job (B), employs job cost sheets to track costs associated with a particular job (D), and typically involves the use of a single Work in Process Inventory account (E).

In job order costing, every job can have different production requirements, material costs, and labor costs. Meanwhile, equivalent units of production are used in process costing where production is continuous, and the products are homogenous. It helps in assigning costs to partially completed units. Therefore, it would not make sense to use this concept in a job order cost system where each job is unique.