A Compound Journal Entry Involves

question 155

Multiple Choice

A compound journal entry involves

• A) two accounts.
• B) three accounts.
• C) three or more accounts.
• D) four or more accounts.

---

Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing of a product and are easily traceable to the final product.

Direct Labor Variances

The difference between the budgeted or standard cost of direct labor for actual production and the actual cost incurred for direct labor.

Direct Labor

The work of factory employees that can be directly traced to the product being manufactured.

Direct Labor Variances

The difference between the expected (standard) cost of direct labor for actual production and the actual cost incurred.