Asked by
Bryelle Thompson
on Nov 12, 2024Verified
In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?
A) materials
B) direct labor
C) rent
D) supplies
Service Business
A type of business that provides intangible products or services to consumers, as opposed to selling physical goods.
Overhead
General, ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and insurance.
Direct Labor
Labor costs that are directly attributed to the production of goods, including wages for workers who manufacture a product or perform a service.
- Understand the job order cost accounting system and its application in both manufacturing and service organizations.
Verified Answer
SS
Learning Objectives
- Understand the job order cost accounting system and its application in both manufacturing and service organizations.