The Entry to Record the Flow of Direct Labor Costs

question 123

Multiple Choice

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

• A) debit Factory Overhead, credit Work in Process
• B) debit Finished Goods, credit Wages Payable
• C) debit Work in Process, credit Wages Payable
• D) debit Factory Overhead, credit Wages Payable

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Definitions:

Differentiation

A marketing strategy where a company seeks to distinguish its product or service from competitors’ offerings through unique features, benefits, or quality.

Cost Focus

A business strategy that aims to gain a competitive advantage by reducing operating costs and offering lower prices than competitors.

Market Specialization

A strategy where a company focuses its marketing efforts on a specific market niche, tailoring its products, services, and marketing activities to meet the needs of that particular market segment.

Product Specialization

Product specialization is a strategy where a business focuses on producing and selling a limited range of products to target a specific market segment or demographic effectively.