Job Costing Quiz

Job costing is only used in furniture manufacturing industries.

• True

• False

Direct materials, direct labor, and manufacturing overhead are the three main cost components in job costing.

• True

• False

Overhead costs in job costing are always allocated based on direct material costs.

• True

• False

In job costing, costs are assigned to individual jobs rather than to departments or processes.

• True

• False

Job costing is suitable for businesses that produce large quantities of identical products.

• True

• False

Which document is used to track the costs of a specific job?

• Profit and loss account

• Job cost sheet

• General ledger

• Trial balance

Which of the following costs is considered a direct cost in job costing?

• Clerk's salary

• Office rental

• Raw materials used in a specific job

• Depreciation on equipment

Which of the following is a challenge of job costing in Malaysia?

• Lack of suitable software

• Inability to track labor costs

• Difficulty in estimating manufacturing overhead accurately

• Inapplicability to service industries