1. Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time. True / False2. In an absorption costing income statement the manufacturing margin is the excess of sales over the variable cost of goods sold. True / False

Question

Business

Chica

19 May, 10:11

1. Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time. True / False2. In an absorption costing income statement the manufacturing margin is the excess of sales over the variable cost of goods sold. True / False

+2

Answers (1)

Know the Answer?

Graves · Answer 1

True and False.

Explanation:

A job cost sheet is used to record costs chargeable to specific jobs. Contributes the subsidiary ledger for the work in process account. Each entry to a work in process inventory must be accompanied by a corresponding posting to one or more job cost sheets.

The raw materials are assigned to the job cost sheet, as well as factory labor costs. The manufacturing overhead is added as indirect cost.

An absorption costing method, the cost of a finished product will include the costs of direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. The margin of a company is the excess of sales over the variable cost and fixed cost of good sold.