If a Job Is Not Completed at Year End, Then

question 388

True/False

If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used.

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Definitions:

Product Cost

The total amount of expenses incurred to produce and deliver a product to the market including materials, labor, and overhead costs.

Period Cost

Costs that are not directly tied to the production of goods and services, such as sales and administration expenses, and are expensed in the period incurred.

Cupcake Mix

A pre-made mixture containing some or all of the ingredients needed to bake cupcakes, requiring only additional wet ingredients or none at all.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.