Final answer:
Indirect manufacturing costs should not be allocated equally to each job; instead, they should be allocated based on the actual usage of the resources by each job.
Step-by-step explanation:
Indirect manufacturing costs should not be allocated equally to each job; instead, they should be allocated based on the actual usage of the resources by each job. Allocating costs equally would result in inaccurate cost assignments and may lead to incorrect pricing decisions and inefficiencies in resource allocation.
For example, if one job requires significantly more machine hours compared to another job, allocating costs equally would unfairly burden the second job with higher costs, even though it utilized fewer resources. On the other hand, allocating costs based on actual resource usage would ensure fair and accurate cost allocation.
Therefore, the statement 'Indirect manufacturing costs should be allocated equally to each job' is false.