The Total Cost of a Job Shown on the Job

question 104

True/False

The total cost of a job shown on the job cost record is the sum of the direct materials and direct labor traced to the job and the manufacturing overhead allocated to the job.

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Definitions:

Economic Life

The estimated period over which an asset is expected to be productive or useful in generating revenue.

Patent Rights

Legal protections granted to inventors or assignees, giving them exclusive rights to use and commercialize their inventions for a certain period.

Double-Declining-Balance

A method of accelerated depreciation where an asset loses value at double the rate of its straight-line depreciation.

Units-Of-Activity

A method for allocating depreciation based on the actual usage, work, or units of production of the asset, rather than passage of time.