Which of These Is the Main Advantage of Setting Up

question 63

Multiple Choice

Which of these is the main advantage of setting up special journals?

• A) They can be used with a cash accounting system.
• B) They remove the requirement for double entry recording.
• C) They reduce the time taken to post to the general ledger.
• D) They make taking out a trial balance easier.

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Definitions:

Equivalent Units

A method used in cost accounting to measure the work done on inventory during a period, which considers partially completed units as a fraction of a full unit.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished products.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "first in, first out."

Process Costing

An accounting method that accumulates direct and indirect costs of a continuous production process and assigns them to individual units of output.