Overhead Costs Are Not

question 55

Multiple Choice

Overhead costs are not

• A) allocated to the Work in Process Inventory account.
• B) charged directly to the Finished Goods Inventory account.
• C) assigned to specific products.
• D) considered product costs.

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Definitions:

Cash Account

An account that records all transactions involving cash inflows and outflows.

Petty Cash Fund

A minor sum of money maintained in reserve to cover minor, immediate costs.

Cash Over and Short

An account that records discrepancies between actual cash received and the expected amount, reflecting errors or theft.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous, small expenses.