1. If a service business uses job order costing, __________. a....
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If a service business uses job order costing, a it groups its customers based on activity and treats each customer group as a separate job b its primary service costs comprise of direct labor and direct materials c it considers the cost of materials or supplies used in rendering services as overhead costs d it includes actual overhead cost while calculating the cost of a job b Which of the following statements is true if a service business uses job order costing? a The Cost of Services account accumulates the direct labor and overhead costs of rendering services to clients. b The cost of direct labor for rendering services is included in overhead cost. c The Cost of Services account is similar to the Cost of Goods Manufactured account. d A Finished Goods account and related Finished Goods ledger are not necessary.
If a service business uses job order costing,
a it groups its customers based on activity and treats each customer group as a separate job
b its primary service costs comprise of direct labor and direct materials
c it considers the cost of materials or supplies used in rendering services as overhead costs
d it includes actual overhead cost while calculating the cost of a job
b
Which of the following statements is true if a service business uses job order costing?
a The Cost of Services account accumulates the direct labor and overhead costs of rendering services to clients.
b The cost of direct labor for rendering services is included in overhead cost.
c The Cost of Services account is similar to the Cost of Goods Manufactured account.
d A Finished Goods account and related Finished Goods ledger are not necessary.
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