In a Job-Order Costing System, Indirect Labor Cost Is Usually

question 250

Multiple Choice

In a job-order costing system, indirect labor cost is usually recorded as a debit to:

• A) Manufacturing Overhead.
• B) Finished Goods.
• C) Work in Process.
• D) Cost of Goods Sold.

---

Definitions:

Operating Activities

Day-to-day actions that are involved in running a company, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments, offering a more straightforward view of a company’s cash flow from operational activities.

Indirect Method

A way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.