In process cost accounting, the costs of direct materials and direct labor are charged directly to a. service departments b. processing departments c. job orders d. customer accounts receivable

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Business

Raegan Briggs

23 February, 08:01

In process cost accounting, the costs of direct materials and direct labor are charged directly to a. service departments b. processing departments c. job orders d. customer accounts receivable

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Rigoberto Duffy · Answer 1

b. processing departments

Explanation:

The direct cost is the cost that is directly or positively related to the production of the product

It includes direct material cost, direct labor cost.

The direct cost i. e direct material cost and the direct labor cost are directly charged to the processing department because on this department, there are a number of processes through which it can make a finished product

Moreover, the cost is not identifiable and the production of goods is engaged in the same nature.