Direct Materials Used in Production, Direct Labor, and Applied Overhead

question 121

Multiple Choice

Direct materials used in production, direct labor, and applied overhead are charged to the:

• A) raw materials account.
• B) overhead account.
• C) work in process account.
• D) indirect labor account.

---

Definitions:

Autonomy to Adapt

The ability of an entity or individual to independently modify behaviors or methods in response to changing conditions.

Low-Cost Strategy

Low-cost strategy is a competitive approach where a company aims to become the lowest cost producer in its industry, offering products or services at a price lower than its competitors to attract cost-sensitive customers.

Differentiation Strategy

A business strategy where a company seeks to distinguish its products or services from competitors, typically through quality, design, or unique features.

Profitable Growth

An increase in revenue that leads to enhanced profitability, reflecting both expansion and efficient operations.