Which statement is true with regard to factory labour costs?

Question

Quizplus · Accepted Answer

Factory labour costs are added to the Factory Labour account and then assigned to work in process or manufacturing overhead. This process is known as cost allocation. Option A is not correct as factory labour costs include both gross wages and any company-paid benefits. Option C is not correct as costs are accrued after they are incurred. Option D is not correct as costs incurred during a particular year cannot be carried over to the next year without being allocated to jobs or overhead.

Which Statement Is True with Regard to Factory Labour Costs