The Two Optional Steps in the Accounting Cycle Are Preparing

question 33

Multiple Choice

The two optional steps in the accounting cycle are preparing

• A) a post-closing trial balance and reversing entries.
• B) a worksheet and post-closing trial balances.
• C) reversing entries and a worksheet.
• D) an adjusted trial balance and a post-closing trial balance.

---

Definitions:

Direct Labor

Direct labor costs are the wages paid to workers directly involved in the production of goods or services. These costs are directly traceable to the cost object, such as a product unit.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, which can indicate changes in materials prices or sourcing efficiency.

Direct Materials

Basic substances used explicitly in the production of a particular item, which can be directly linked to its creation.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard prices.