Electricity costs that were incurred by a company's production processes should be debited to:

Question

Quizplus · Accepted Answer

Electricity costs incurred during production processes are considered indirect costs and should be debited to the Manufacturing Overhead account. This account is used to accumulate all indirect costs that are necessary for the production process, which will later be allocated to the cost of the products manufactured.

Electricity Costs That Were Incurred by a Company's Production Processes