Which of the following temporary accounts is typically used in just-in-time management systems to accumulate direct labor and manufacturing overhead costs?
A)Adjustments account
B)Conversion Costs account
C)Manufacturing Overhead account
D)Work-in-Process account

Question

Quizplus · Accepted Answer

The Conversion Costs account is a temporary account used in just-in-time management systems to accumulate direct labor and manufacturing overhead costs. This account includes all costs incurred to convert raw materials into finished goods, such as direct labor, indirect labor, utilities, and maintenance costs. The other options are not specific to just-in-time management systems or may not be used to accumulate these types of costs.

Which of the Following Temporary Accounts Is Typically Used in Just-In-Time