There was no accrual for the direct labor at the end of the year.This error will cause:

Question

Quizplus · Accepted Answer

Not accruing for direct labor at the end of the year means that the expenses related to direct labor are not recorded in the period they are incurred. This error does not directly affect the cost of goods manufactured, cost of goods sold, or net income in the manner described by the other options. The actual impact would depend on how and when the error is corrected.

There Was No Accrual for the Direct Labor at the End