A Subsidiary Ledger Frees the General Ledger from Details of

question 52

Multiple Choice

A subsidiary ledger frees the general ledger from details of

• A) individual balances.
• B) external transactions.
• C) internal transactions.
• D) the control account.

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Definitions:

Variable Cost Per Unit

This is the cost that varies with each unit produced, including materials, labor, and other direct costs.

Total Fixed Costs

The sum of all costs that do not change with the level of output or activity within a certain period.

Cost-Volume-Profit Analysis

The examination of the relationships among selling prices, sales and production volume, costs, expenses, and profits.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.