Indirect costs incurred are charged directly to the Work in Process Inventory account.

Name: Indirect costs incurred are charged directly to the Work in Process Inventory account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Indirect costs are not charged directly to the Work in Process Inventory account. They are allocated to the inventory using a predetermined overhead rate and charged to the account through the application of this rate at the end of the period.

Indirect Costs Incurred Are Charged Directly to the Work in Process