In a Firm That Uses Special Journals,the Acceptance of a Return

question 17

Multiple Choice

In a firm that uses special journals,the acceptance of a return of merchandise from a credit customer is recorded in the

• A) cash receipts journal.
• B) sales journal.
• C) cash payments journal.
• D) general journal.

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Definitions:

Direct Labour Costs

Expenses related to employees who are directly involved in the production of goods or services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs.

Direct Materials

These are raw materials that are directly traceable to the manufacturing of a product.

Direct Labour-Hours

The sum of working hours for employees actively participating in the manufacturing procedure.