Which Best Describes the Set of Costs That Are Debited

question 62

Multiple Choice

Which best describes the set of costs that are debited directly to work in process inventory?

• A) Actual direct materials, actual direct labour, applied overhead
• B) Actual indirect materials, actual indirect labour, actual overhead
• C) Actual indirect materials, actual direct labour, applied overhead
• D) Actual direct materials, actual direct labour, actual overhead

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Definitions:

Producing Efficiently

The process of manufacturing goods or delivering services in a way that minimizes waste, resources, and time while maximizing productivity and quality.

Direct Labour Hours Quantity

The total number of labor hours spent by workers who are directly involved in the production of goods or services.

Standard Cost

An estimated or pre-determined cost of performing an operation or producing a good, used in budgeting and pricing.

Actual Cost

The tangible and realized expense incurred for materials, labor, and overhead in the production of goods or services.