Consistency in Accounting Means That a Company Uses the Same

question 139

True/False

Consistency in accounting means that a company uses the same accounting principles from one accounting period to the next accounting period.

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Definitions:

Recorded

The act of documenting financial transactions in the accounting records of a business.

Predetermined Overhead

A calculated rate used to estimate the manufacturing overhead costs for a specific period, based on projected or historical data.

Job Cost Sheets

Documents that record and track the costs associated with a specific job or project.

Direct Materials

Fundamental materials directly identifiable in the creation of a product.