As overhead costs are incurred in a service firm, the costs are debited to a(n):

Name: As overhead costs are incurred in a service firm, the costs are debited to a(n):
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Question

Quizplus · Accepted Answer

Overhead costs are indirect costs that cannot be directly attributed to a specific service or product. These costs are accumulated in an overhead account until they are allocated to the service or product using an appropriate allocation method. Therefore, the correct option is C - Overhead account.

As Overhead Costs Are Incurred in a Service Firm, the Costs