Accounts Often Need to Be Adjusted Because

question 94

Multiple Choice

Accounts often need to be adjusted because

• A) there are never enough accounts to record all the transactions.
• B) many transactions affect more than one time period.
• C) there are always errors made in recording transactions.
• D) management can't decide what they want to report.

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Definitions:

Incremental Costs

Costs that change as a result of a new policy, project, or decision, essentially the difference in total costs between two alternatives.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Finished Units

Products that have completed the manufacturing process and are ready for sale or distribution to customers.

Direct Labor

The wages paid to workers directly involved in the production of goods or services.