A service organization will not use the job order costing method because it has no direct materials.

Name: A service organization will not use the job order costing method because it has no direct materials.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A service organization may not have direct materials, but it can still use job order costing to allocate indirect costs to specific jobs or services. Examples of indirect costs can include salaries of employees, rent, utilities, and equipment depreciation.

A Service Organization Will Not Use the Job Order Costing