When Job Order Costing Is Used in the Service Industry

question 149

True/False

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

---

Definitions:

Fundamental Attribution Errors

A cognitive bias where people are more likely to attribute another’s actions to their character or disposition rather than to external factors.

Internal Attribution Biases

The tendency to attribute one's successes to internal factors and failures to external factors, often underestimating situational influences.

Social Facilitation

The tendency for an individual to perform differently, usually better, in the presence of others than when alone.

Situational Attributions

The process of explaining the behavior of others based on external factors or circumstances, rather than attributing their actions to internal characteristics.