In the Land Development and Home Building Industry, Materials Costs

Multiple Choice

In the land development and home building industry, materials costs are typically added to the inventory cost of a specific unit based on actual purchases prices except when:

A) subcontractors are used, in which case the costs cannot be directly traced to plan specifications.
B) multifamily residences are constructed, in which case it is necessary to allocate common costs.
C) job order costing is used, in which case the specific identification method cannot be applied.
D) large quantities of building materials are purchased that cannot be tracked to individual units.