Work-In-Process Is Credited and Payroll Is Debited When Direct Labor

question 92

True/False

Work-in-Process is credited and Payroll is debited when direct labor is charged to production.

---

Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce them, leading to more accurate product costing.

Idle Capacity

Unused or underutilized production capacity within a business, often resulting in inefficiency and increased costs.

Organization-Sustaining Costs

Costs that are not directly attributable to any specific business activity, product, or service but are necessary for the overall operation of an organization.

Production Order Processing

The series of steps involved in producing goods or services, from the initiation of the order to its completion.