In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?
A) materials
B) direct labor
C) rent
D) supplies

Question

Quizplus · Accepted Answer

Direct labor is not included as part of overhead in a job order cost accounting system. Overhead typically includes indirect costs such as rent and supplies, whereas direct labor is directly attributable to a specific job or project.

In a Job Order Cost Accounting System Used by a Service