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Under a job order cost accounting system, individual jobs are always charged with actual overhead costs...

Under a job order cost accounting system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods. Select one: True False

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Answer #1
FALSE
Under a job order cost accounting system, individual jobs are always charged with applied overhead costs when they are transferred to finished goods.
The overhead costs are applied to finished goods based on predetermined overhead rate determined at the beginning of year.
The difference between applied and actual overhead costs is transferred to Cost of goods sold at the end of period.
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