The Finished Goods Account Is a Controlling Account for the Subsidiary

question 94

Multiple Choice

The finished goods account is a controlling account for the subsidiary:

• A) sales ledger.
• B) materials ledger.
• C) work-in-process ledger.
• D) stock ledger.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Total Revenue Product

The overall income generated by a firm from selling its output, factoring in the quantity of output sold and the price per unit.

Marginal Physical Product

The additional output that results from using one more unit of a factor of production, keeping other factors constant.

Marginal Revenue Product

Marginal Revenue Product measures the increase in revenue realized from employing one additional unit of input, such as labor or capital, holding all other inputs constant.