When Overhead Is Debited to Overhead Control, What Is the Credit

question 129

Multiple Choice

When overhead is debited to Overhead Control, what is the credit?

• A) Various payable accounts
• B) Cost of Goods Sold
• C) Work in Process
• D) Finished Goods
• E) Accounts Receivable

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Definitions:

Catering Department

A division within a company or a facility that is responsible for providing food services for events, meetings, and functions.

Profit Center

A segment or division of a company that is directly responsible for generating its own revenue and profit.

Cost Center

A department or function within a business to which costs are charged for accounting purposes, but does not directly generate revenue.

Investment Center

A business unit or segment within an organization that is responsible for its own revenues, expenses, and investments in assets.