When Job Order Costing Is Used in the Service Industry,the

question 157

True/False

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

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with fixed dividends.

Common Stock

Common Stock represents shares in a company that entitle the holder to vote at shareholders' meetings and to receive a part of the company's profits as dividends.

Stated Value Stock

Stated value stock is an issue of shares that does not have a par value but instead has a nominal stated value assigned by the company.

Preferred Stock

A type of equity security that offers dividends and other advantages before common stock, in the event of liquidation.