The Use of Special Journals to Record Transactions

question 120

Multiple Choice

The use of special journals to record transactions

• A) eliminates the need for a general ledger.
• B) can save time in the posting process.
• C) eliminates the need for a general journal.
• D) should only be used if the volume of transactions is small.

---

Definitions:

Organization-Sustaining Activities

Activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.

First-Stage Allocations

The process of assigning overhead costs to different departments or cost pools as a first step in allocating costs to individual products or services.

ABC System

Refers to Activity-Based Costing System, a method of assigning costs to products or services based on the resources they consume.

Activity Cost Pools

Pools of indirect costs in accounting, classified according to the activities that drive those costs.