Which of the following is true of plant utility costs?
A) It increases the Materials Control account.
B) It increases the Manufacturing Overhead Control account.
C) It increases the Work-in-Process Control account.
D) It is a direct cost.

Question

Quizplus · Accepted Answer

Plant utility costs are an indirect manufacturing overhead cost, which is included in the Manufacturing Overhead Control account. It is not a direct cost that can be traced to a specific product.

Which of the Following Is True of Plant Utility Costs