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:

Cash Dividend

A payment made by a corporation to its shareholders, usually in cash, out of its profits or reserves.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss upon sale or disposition of the property.

Subchapter S

A designation of corporation that meets specific Internal Revenue Service criteria, allowing it to be taxed as a pass-through entity, avoiding double taxation.

Taxable Income

The portion of a person's or a company's income used to determine how much tax is owed to the government.