In job-order costing,all of the following statements are correct with respect to labour time and cost except:
A) time tickets are kept by employees showing the amount of work on specific jobs.
B) the job cost sheet for a job will contain all direct labour charges to that particular job.
C) labour cost that can be traced to a job only with a great deal of effort is treated as part of manufacturing overhead.
D) a machine operator performing routine annual maintenance work on a piece of equipment would charge the maintenance time to a specific job.

Question

Quizplus · Accepted Answer

The correct statement is that a machine operator performing routine annual maintenance work on a piece of equipment would NOT charge the maintenance time to a specific job because it is not directly related to the production of any specific product. This type of labor cost would be treated as part of manufacturing overhead.

In Job-Order Costing,all of the Following Statements Are Correct with Respect