 In this presentation, we will take a look at multiple choice questions related to job cost system. First question, job cost sheets include each except a. The direct labor costs, b. Customer name, c. Advertising costs for a job, d. The overhead costs, e. The direct materials costs. Let's go through this again using the process of elimination. Job cost sheets include each except. Now what is a job cost sheet? That's going to be the sheets that support the work and process or the finished goods account in terms of the jobs we're working on kind of like the inventory items that we're working on if we're for manufacturing inventory or the job we're working on if it's a service company and they typically if we're making inventory include the details of the cost of the job and any inventory we make remember has three details direct materials support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need then can be done on a youtube page we also include added resources such as excel practice problems pdf files and more like quickbooks backup files when applicable so once again click the link below for a free month membership to our website and all the content on it labor direct labor and overhead so those are probably going to be on the job sheet so if we go through these we're going to say the direct labor costs that's probably on the job sheet so so direct labor hot that's not it because it's on the job sheet b says customer name probably but you know we'll keep that for now c says advertising costs for a job you know it's a kind of a cost you were it noticed the same for a job here we like we advertise a particular job so i'll keep that for now and then d says the overhead costs and that's going to be on the job cost sheet we would think and then e says the direct materials costs that looks sounds reasonable so i think that's on there and that's not it so because those are our main three direct materials labor direct labor and overhead so we're left with b and c so if we go through this again job cost sheets include each except b customer name or c advertising costs for a job now of the two i would think that b would be included we don't we need to know you know who's the customer related to the job because we're going to eventually have to assign that track that and build them so i think b is going to be in the job cost sheet we're going to have to know that somehow at least and then c advertising costs for the job is kind of tricky because they're applying it to the job and not just saying it's general advertisement but the advertising whether it be applied to a particular job or not is not part of production meaning it's not the job cost sheets are tracking inventory the cost of inventory and advertising is a general and administrative costs it's not part of inventory so we're not going to include advertising typically in the cost of the inventory because it's not something that converts the raw material to finished goods it helps us to convert a sale once the inventory has been produced so the final answer is c let's go through the final answer job cost sheets include each except c advertising costs for a job next question which industry would use a job costing system a a general contractor b fruit punch production c yogurt d seeds for planting e small gardening tools so let's go through this again using the process of elimination which industry would use a job costing system now when we think about this we're always thinking about this in terms of what the other costing system is which is a process costing system and the major differentiation between the two typically will be that the job cost system will have differentiation in inventory whereas the process cost system will typically be all the same therefore job costs we track costs by job process costs we track costs by process because of that differentiation in inventory versus sameness in inventory so if we go through these then a a general contractor a general contractor possibly has different jobs you know that they work on so i would think that might be a job cost system fruit punch if we're mass producing fruit punch unless it's like some customized production of fruit punch i would think would be a process cost because all the end result would probably be all the same we'd be using to maximize production so probably not that c yogurt again i would think the same thing i would think that we're trying to make all the yogurt the same and once we get the process down the system down we can mass produce it and make it all the same and use a process cost d seeds for planting and you know there's a little bit you know we might have to do something on it but i would think that all the seeds are pretty much the same we're going to try to make a system to make all the seeds the same and gather the seeds and have the same amount of seeds in a certain you know basket or whatever and so i would think that would still be a process cost and not a not a job cost and then east has small gardening tools and as long as if they're small and they're all the same and we're making them or producing them again i would think that we would make those all in in the process cost so this is one so i don't think it's that this is one that didn't use customization if we saw the word customized something and we make customized something then that's usually for sure going to be a job cost this one is a general contractor which by the nature of being a contractor you know it's typically going to be different so contracting is a a little bit different uh the way the jobs are tracked but it's a job cost system and all the jobs are typically different so i think a would be the final answer let's go through it one last time which industry would use a job costing system a a general contractor next question cost accounting systems are a job job order costing and perpetual costing b job order costing and job hunting system c job order costing and specific identification d job order costing and process costing e job order costing and first in first out so let's go through this again using the process of elimination cost accounting systems are now all of them have job order costing so i mean this first half is pretty much a given so we don't really even need to read that anymore and we're really just saying okay what's the second what's the second half here and a says perpetual accounting uh we may have heard perpetual account i mean that's a thing kind of we've probably heard perpetual system before uh so i'll keep that for now and b says job hunting system and that and that sounds just kind of silly i don't know job hunting system i it sounds like it's uh you know something that was made up because they ran out of options or something so i think that one probably not it and c says specific identification um we we may have heard specific identification but that actually has to do with tracking uh inventory in a merchandising company typically where we specifically identify the inventory as it goes so it's actually that's not going to typically be uh a cost typical cost accounting it's it's more of a merchandising usually uh d says uh process costing uh and again we may uh have that that sounds familiar so i'll keep that one for now and e says first in first out and again we probably heard a first in first out but it's not it's not usually a cost accounting system first in first out is how we track again like specific identification in a merchandising company typically it's some kind of cost flow assumption so i don't think it's going to be first in first out so let's go through this again cost accounting systems are job costs and what's the other one perpetual costing now that's kind of alluding to perpetual versus periodic which which has to do oftentimes again with the merchandise with a with a merchandising company has that option so it's not going to be that specific identification has to do with typically a you know how we're tracking the inventory in a merchandising company and then of course it's going to be the process costing so it's a job cost system and a process cost system those are the two that we're always contrasting when we think of a job cost system or when we think of a job process cost whatever one we're working on we're often going to be asked questions or thinking about it's opposite or it's the other one comparing and contrasting to the other one so we're always thinking between job cost process cost the difference of course being the differentiation typically in inventory and other differences that result from it