The Statement Concerning Job Costing That Is Untrue Is

question 44

Multiple Choice

The statement concerning job costing that is untrue is:

• A) Under normal costing overhead is allocated to jobs using the estimated overhead allocation rate
• B) Under normal costing overhead is allocated to jobs using the estimated volume of usage of the allocation base
• C) Actual job costs will almost certainly be different from estimated job costs
• D) Managers monitor operations by comparing actual job costs to the original estimate

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Definitions:

Master Production Schedule

A plan for individual commodities to be produced in each time period, serving as a connection between production and sales.

Stainless Steel

An alloy of iron with a minimum of 10.5% chromium content by mass, known for its resistance to rust and staining.

System Nervousness

The phenomenon in planning and scheduling where small changes lead to significant, often unnecessary, adjustments in operations.

MRP Schedule

A schedule generated by Material Requirements Planning systems, detailing what materials are required and when, to meet production demands.