Which of the Following Costs Do NOT Go Directly into the Work

question 157

Multiple Choice

Which of the following costs do NOT go directly into the work in process account?

• A) Factory overhead
• B) Indirect labor
• C) Factory janitorial costs
• D) The purchase of raw materials

---

Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable costs - costs that change with production levels - in product cost calculations.

Net Operating Income

It refers to the profit generated from a company's ordinary, core business operations after subtracting operating expenses from operating revenues.

First Year

The initial year of operation, production, or accounting period.