Question

Match each of the terms/phrases numbered 1 through 5 with the best definition a through e.

1. Cost accounting system a. Production of products in response to

customer orders

2. Target cost b. Production activities for a customized product

3. Job lot c. A system that records manufacturing costs

4. Job d. The expected selling price of a job minus its

desired profit.

5. Job order production.e. Production of more than one unit of a custom

product.

Short answer

1. Cost accounting system - c
2. Target cost - d
3. Job lot – e
4. Job – a
5. Job order production - b

Step-by-step solution

Meaning of Cost accounting

The accounting method that deals with calculating the total cost incurred by the business entity in the production process and classifying the cost incurred are known as cost accounting. There are various cost accounting methods available job order costing, process costing, and activity-based costing.

Matching each of the terms

S.no.	Terms		Best definition	Explanation
1	Cost accounting system	c	A system that records manufacturing costs	An accounting system determines the cost of producing a particular product or service.Two types of costing systems exist job order costs and process costs.
2	Target cost	d	The expected selling price of a job minus its desired profit.	The target cost of an item is the expected selling price minus its selling/administration expenses and the desired profit margin. Target costing measures the level of costs required to make a particular profit at a competitive market price.
3	Job lot	e	Production of more than one unit of a custom product	A job lot is the common name for a project that involves creating multiple units of a unique product. Some examples of the goods produced in job lots include imprinted T-shirts and baseball caps for a business outing or advertising banners for a chain of establishments.
4	Job	a	Production of products in response to customer order	An example of jobbing, or one-off production, is producing a one-off product for a specific customer or a small batch of work in quantities usually lower than those used in mass-market products.
5	Job order production	b	Production activities for a customized product	Products like custom-built homes and invitations—for weddings, parties, or conventions—are examples of work order production. A job is represented by the production activities for a bespoke product. Numerous businesses create specially crafted products to satisfy a particular customer's requirements.