When Preparing the Cash Disbursement Journals, It Is Important That

question 24

True/False

When preparing the cash disbursement journals, it is important that the records have the actual date of cash disbursement, as is shown on the check.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate overhead costs to products or services.

Activity Cost Pools

A method in cost accounting used to group all related costs associated with specific activities.

Activity-Based Costing

A pricing method that allocates expenses to goods or services according to the resources they use.

Machine-Hours

A measure of production time, indicating the total hours that machines are operational within a set period.