The Statement Concerning Job Costing That Is Untrue Is

question 145

Multiple Choice

The statement concerning job costing that is untrue is:

• A) Actual job costs will almost certainly be different from estimated job costs
• B) Under normal costing overhead is allocated to jobs using the estimated overhead allocation rate
• C) Under normal costing overhead is allocated to jobs using the estimated volume of usage of the allocation base
• D) Managers monitor operations by comparing actual job costs to the original estimate

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Definitions:

Concealment

The active hiding of the truth about a material fact.

Nondisclosure

A legal agreement or clause that prohibits sharing confidential information with unauthorized parties.

Negligence

Negligence is the failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for any damages caused.

Duress

A condition in which a person performs an act as a result of violence, threat, or other pressure against the person, rendering any agreement made under such conditions potentially voidable.