In Some Circumstances, a Process Costing System Can Classify Wages

question 139

True/False

In some circumstances, a process costing system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

---

Definitions:

Planned Output

The expected or targeted level of production set by a company or economy, often based on demand forecasts and capacity planning.

Inventories

The total amount of goods and materials held by a company or business in anticipation of sale or completion.

Income-Expenditure Model

A relationship that shows how much people plan to spend at each income level; this model identifies, for a given price level, where the amount people plan to spend equals the amount produced in the economy.

Real GDP

Represents the total economic output of a country, adjusted for inflation, thereby providing a more accurate reflection of an economy's size and growth.