The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

Name: The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.
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Question

Quizplus · Accepted Answer

Indirect manufacturing costs cannot be directly attributed to a specific product or job, so an appropriate allocation base, such as machine hours or direct labor hours, must be used to assign these costs to the products being produced.

The Key to Allocating Indirect Manufacturing Costs to Jobs Is