When the Work-In-Process Account Is Debited for Direct Labor, What

question 158

Multiple Choice

When the work-in-process account is debited for direct labor, what account is usually credited?

• A) Cost of Goods Sold
• B) Sales Revenue
• C) Wages Payable
• D) Overhead Control
• E) Accounts Receivable

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Definitions:

Component Cost

The cost associated with each separate element (debt, equity, etc.) that comprises the overall cost of capital for a firm.

Noncallable Bond

A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.

Annual Coupon

The yearly interest payment made to bondholders, expressed as a percentage of the bond's face value.

Bond-Yield-Plus-Risk-Premium

A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.