Final answer:
The statement that direct costs traced to jobs using budgeted rates will equal actual direct costs is false. Budgeted rates are estimates, and variances between budgeted and actual costs are common and should be analyzed.
Step-by-step explanation:
At the end of the year, the statement that direct costs traced to jobs using the budgeted rates will equal actual direct costs is false. Budgeted rates are predetermined estimates used for planning and control purposes during the budgeting process. These rates are likely to differ from actual direct costs due to various factors including changes in prices, inefficiencies, or unexpected expenses. Actual direct costs can only be determined after the fact, and the purpose of using budgeted rates is to provide a benchmark for assessing performance, not to equal actual costs consistently. There might be variances between budgeted and actual costs that need to be analyzed and understood.