Manufacturing overhead costs cannot be directly traced to jobs.

Name: Manufacturing overhead costs cannot be directly traced to jobs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Manufacturing overhead costs include indirect materials, indirect labor, rent, utilities, and depreciation. These costs cannot be directly traced to specific jobs or products and must be allocated or assigned to them using an overhead allocation method, such as predetermined overhead rate.

Manufacturing Overhead Costs Cannot Be Directly Traced to Jobs