Which of the following statements is true?
A)Both job-order cost and process cost systems track direct materials and direct labour, but only job-order cost systems track manufacturing overhead.
B)Both job-order cost and process cost systems track direct materials and direct labour, but only process cost systems track manufacturing overhead.
C)Both job-order cost and process cost systems track direct materials, direct labour and manufacturing overhead.
D)Only manufacturing overhead costs are tracked in both job-order cost and process cost systems.

Question

Quizplus · Accepted Answer

Both job-order cost and process cost systems track direct materials, direct labour, and manufacturing overhead. Job-order cost systems track manufacturing overhead by allocating it to specific job orders, whereas process cost systems track it by allocating it to departments or processes. Both systems can also track other costs such as indirect materials and indirect labour.

Which of the Following Statements Is True