The Following Items Are Used in Tracing Costs in an ABC

question 168

Multiple Choice

The following items are used in tracing costs in an ABC system.In which order are they used?

• A)1,2,3,4
• B)2,3,4,1
• C)2,4,3,1
• D)4,3,1,2

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Definitions:

Account Receivable

Money owed to a company by its debtors for goods or services that have been delivered or sold but not yet paid for.

Subsidiary Ledgers

Detailed ledgers that provide a breakdown of individual accounts that are summarized in the general ledger.

Customers Ledger

A subsidiary ledger containing individual accounts for customers, showing each customer's sales, payments, returns, and the current balance owed.

Creditors Ledger

A ledger that keeps records of the amounts owed by the business to its suppliers or creditors.