In process cost accounting, the costs of direct materials and direct labor are charged directly to
A) service departments
B) processing departments
C) customer accounts receivable
D) job orders

Question

Quizplus · Accepted Answer

In process cost accounting, the costs of direct materials and direct labor are charged directly to the processing departments where they are used to manufacture the product. Service departments do not manufacture the product and customer accounts receivable are related to billing and payment, not cost accounting. Job orders are used in job cost accounting, not process cost accounting.

In Process Cost Accounting, the Costs of Direct Materials and Direct