All of the following create problems with accurate product or job costing except:
A)incorrect job numbers are recorded on source documents.
B)bar coding is used to record materials used on the job.
C)using budgeted overhead costs to determine overhead cost allocation rates.
D)a computer screen requests an employee number before that employee is able to work on information related to a specific job.

Question

Quizplus · Accepted Answer

Bar coding materials used on the job can improve accuracy in product or job costing by reducing the chances of human error in manually recording materials used. The other options (A, C, and D) can all create problems with accurate product or job costing. Recording incorrect job numbers on source documents can result in costs being assigned to the wrong job, leading to inaccurate cost estimates. Using budgeted overhead costs to determine overhead cost allocation rates may not reflect actual overhead costs, resulting in inaccurate product or job costing. Requiring an employee number before working on information related to a specific job may lead to delays in recording information and inaccuracies if the wrong employee number is entered.

All of the Following Create Problems with Accurate Product or Job