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:

Minority Group

A category of people who experience relative disadvantage as compared to members of a dominant social group.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy through censuses and surveys.

New Venture Creation

The process of designing, launching, and running a new business or enterprise.

Economic Mobility

The ability of an individual, family, or some other group to improve (or lower) their economic status—usually measured in income.