Job Costing Information Systems Are Most Appropriate For

question 28

Multiple Choice

Job costing information systems are most appropriate for:

• A)Home builders
• B)Textbook publishers
• C)Beverage companies
• D)both a and b are appropriate industries for job costing systems

---

Definitions:

Activity Rate

The predetermined rate used to allocate overhead costs to products or services based on a specific activity measure, such as machine-hours or labor-hours.

Labor-Related Activity

Activities or tasks that directly involve or are associated with the workforce's efforts in the production process or service delivery.

Traditional Costing Method

A costing method that allocates overhead costs to products based on a predetermined rate, usually associated with direct labor hours or machine hours.

Direct Labor-Hours

A measurement of the actual amount of production work done by employees, expressed in hours, not involving indirect labor.