In Job-Order Costing,all of the Following Statements Are Correct with Respect

question 16

Multiple Choice

In job-order costing,all of the following statements are correct with respect to labour time and cost except:

• A) time tickets are kept by employees showing the amount of work on specific jobs.
• B) the job cost sheet for a job will contain all direct labour charges to that particular job.
• C) labour cost that can be traced to a job only with a great deal of effort is treated as part of manufacturing overhead.
• D) a machine operator performing routine annual maintenance work on a piece of equipment would charge the maintenance time to a specific job.

Recognize the transformative impact of competition on societal welfare through innovation and efficiency.

Understand the conditions for long-run equilibrium in purely competitive markets and the achievement of normal economic profits.

Recognize the allocation efficiency in pure competition where production occurs at the output level where P = MC.

Comprehend the differences between short-run and long-run supply curves in purely competitive industries.

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Definitions:

Simple Rate of Return

A calculation that estimates the profitability of an investment, dividing annual incremental net operating income by the initial investment cost.

Cash Operating Costs

Expenses a business incurs through its operations that require cash payments, excluding non-cash expenses like depreciation.

Automating Process

The method of using technology to perform tasks with minimal human intervention.

Discount Rate

The interest rate fundamental to converting future cash flows into their present financial equivalent in discounted cash flow analysis.