If a Transaction Cannot Be Recorded in a Special Journal

question 141

Multiple Choice

If a transaction cannot be recorded in a special journal

• A) the company must refuse to enter into the transaction.
• B) it is recorded in the general journal.
• C) it is recorded directly in the accounts in the general ledger.
• D) it is recorded as an adjustment on the work sheet.

Determine total product and period costs for specific production volumes.

Understand the concepts of direct costs, conversion costs, and prime costs in manufacturing.

Calculate manufacturing overhead cost for different production levels.

Understand incremental manufacturing costs for changes in production volume.

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Definitions:

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods demanded, with no excess supply or demand in the market.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change despite changes in price.

Excise Tax

A tax imposed on the sale of specific goods and services, such as tobacco, alcohol, and gasoline.

Marginal Rate

The rate at which the cost or value of something changes with a one-unit increase in quantity or production.