Which of the Following Source Documents Is Used to Assign

question 45

Multiple Choice

Which of the following source documents is used to assign direct labor cost to each particular job?

• A)A materials requisition form
• B)A time ticket
• C)A work-in-process inventory file
• D)A work ticket

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Definitions:

Relevant Costs

Relevant costs are those costs that should be considered when making decisions. They are directly affected by the decision in question and can include future costs that will differ among alternatives.

Fixed Manufacturing Expenses

Costs that do not vary with the volume of production, such as rent, depreciation of manufacturing equipment, and salaries of permanent factory staff.

Selling and Administrative Expenses

Expenses incurred from selling products or services and managing the business, excluding production costs.

Variable Selling

Expenses that change in proportion with the volume of sales, such as commissions or shipping costs.