Question:Which of the following statements concerning job costing systems is incorrect? 

A Cost drivers are those items which cause actual overhead to exceed applied overhead. 
B Job costing systems are appropriate to both manufacturing and service businesses. 
C Traditionally, direct labor has been a very popular overhead application base. 
D In a service business, indirect costs of providing a service are treated as overhead and applied in a manner similar to that for factory overhead. 

+ Answer
C 

+ Explanation
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Md. Habib Ullah

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