Which One of the Following Statements About Payroll Linked Accounts

question 26

Multiple Choice

Which one of the following statements about payroll linked accounts is correct -

• A)each employee has a unique linked wage expense account
• B)each employee must be linked to the same wage expense account
• C)each type of income must be linked to a unique expense account
• D)none of the above

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Definitions:

First-In, First-Out

An inventory valuation method where the costs of the earliest goods purchased or produced are the first to be recognized in determining cost of goods sold.

Units Transferred Out

Describes the quantity of goods that have completed the production process and are moved out of the work-in-process inventory into finished goods or to another process.

Units Started

The number of units of a product that have begun the production process within a specific period.

Cost Per Equivalent Unit

This measures the total cost of producing one unit of goods, considering both direct and indirect costs, and is used in processes where goods are indistinguishable from each other.