The Eight Recurring Steps Performed Each Accounting Period, Starting with Recording

question 109

Multiple Choice

The eight recurring steps performed each accounting period, starting with recording transactions in the journal and continuing through the post-closing trial balance, is called the

• A) Accounting period
• B) Operating cycle
• C) Accounting cycle
• D) Closing cycle
• E) Natural business year

---

Definitions:

Least-Squares Regression

A statistical method used to determine and approximate the relationship between variables, minimizing the squared differences between observed and predicted values.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant regardless of business activities.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs by analyzing the highest and lowest levels of activity and their associated costs.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume, such as raw materials and packaging.