Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 3 - Job-Order Costing - Questions - Page 112: 3-1

Answer

Overhead costs cannot be traced just as direct materials or direct labor cost traced jobs.

Work Step by Step

Furthermore, overhead costs must be allocated rather than traced if they are to be assigned to products or job.
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