When Job Costing Is Used at a Service Company, Direct

question 114

True/False

When job costing is used at a service company, direct costs of serving the client are traced to the job, whereas the indirect costs of serving the client are allocated to the job.

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Definitions:

Bushels

A unit of volume that is commonly used in agriculture for measuring quantities of grain, fruit, and other dry commodities.

Consume

The use of goods and services by households or individuals, typically referring to the act of buying and using products.

Harvest

The process of gathering mature crops from the fields.

Grain

Small, hard seeds, especially the seeds of various food plants such as wheat, corn, rye, oats, and barley.