When Job Order Costing Is Used in a Service Business

question 103

True/False

When job order costing is used in a service business, the allocation of direct labor costs is normally based on direct labor hours, and the allocation of indirect costs is normally based on the indirect labor hours.

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Definitions:

Cash Flow from Assets

A measure of the amount of cash generated by a company's investments in assets after accounting for financing and operations.

Positive

Characterized by or displaying affirmation or acceptance or certainty.

Long-term

Refers to holding investments or assets for a duration typically exceeding one year.

Capital Structure

The composition of a firm's financing through a combination of debt and equity.