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In a job-order cost system, indirect labor is assigned to a job using information from the employee time ticket

A. True
B. False

User Toxvaerd
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1 Answer

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Final answer:

In a job-order costing system, indirect labor is not assigned to specific jobs using time tickets; it is allocated based on an overhead rate. Time tickets are used to track direct labor, not indirect labor.

Step-by-step explanation:

The statement that in a job-order cost system, indirect labor is assigned to a job using information from the employee time ticket is false.

Indirect labor costs are not directly traceable to a specific job and therefore, they are pooled together in an overhead cost pool and then allocated to jobs based on an overhead allocation base such as machine hours or direct labor costs, not directly from employee time tickets. Employee time tickets are typically used for direct labor costs, which are traceable to specific jobs.

User Robert Penner
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