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:

Administrative Costs

Expenditures associated with the general administration and operation of a business, including salaries of non-production staff and office supplies.

Employee Participation

The involvement of employees in the decision-making processes of an organization, often aimed at improving commitment, productivity, and job satisfaction.

Indirect Compensation

Benefits provided to employees that are not included in direct salary, such as health insurance, retirement plans, and paid time off.

Employees' Paycheques

The periodic payments made to employees as compensation for their work, typically including details such as gross earnings, deductions, and net pay.