Asked by Chelsea Lewis on Jun 12, 2024
Verified
Nonmanufacturing costs are expensed as incurred, rather than going into the Work in
Process account.
Nonmanufacturing Costs
Expenses not related to the production of goods, such as selling, administrative, and financial costs.
Work in Process
Stock that consists of items that are in the midst of production but have not yet reached completion.
- Recognize the impact of nonmanufacturing costs on financial statements.
Verified Answer
AU
Amanda UsseryJun 18, 2024
Final Answer :
True
Explanation :
Nonmanufacturing costs such as selling, general and administrative expenses are expensed as incurred and are not included in the Work in Process account.
Learning Objectives
- Recognize the impact of nonmanufacturing costs on financial statements.