O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare paid $700 for equipment rental and other indirect costs.The recognition of this event would:
A) Decrease total assets.
B) Increase total assets.
C) Reduce net income.
D) Have no impact on total assets.

Question

Quizplus · Accepted Answer

Indirect costs are expensed in the period incurred and do not affect total assets.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order