Asked by Ameer Salem on Jun 13, 2024
Verified
In job-order costing, all of the following statements are correct with respect to labour time and cost except:
A) a machine operator performing routine annual maintenance work on a piece of equipment would charge the maintenance time to a specific job.
B) time tickets are kept by employees showing the amount of work on specific jobs.
C) labour cost that can be traced to a job only with a great deal of effort is treated as part of manufacturing overhead.
D) the job cost sheet for a job will contain all direct labour charges to that particular job.
Job-order Costing
A costing method used to track costs to individual jobs or batches, assigning direct costs and allocating indirect costs to each job.
Labour Time
The total hours worked by employees measurable for a specific period, often used for costing and productivity analysis.
- Comprehend the differentiation between direct and indirect expenses and their documentation in job costing processes.
Verified Answer
EP
Edward PalaigosJun 14, 2024
Final Answer :
A
Explanation :
Routine annual maintenance work on a piece of equipment is not charged to a specific job but rather treated as manufacturing overhead because it benefits multiple jobs and is not directly attributable to any single job.
Learning Objectives
- Comprehend the differentiation between direct and indirect expenses and their documentation in job costing processes.
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