All of the Following Activities Occur at the Time of a Cash

question 89

Multiple Choice

All of the following activities occur at the time of a cash disbursement from petty cash except

• A)the petty cash custodian signs the voucher.
• B)available supporting documents are attached to the voucher.
• C)a journal entry is made for each cash distribution.
• D)the individual receiving payment signs the voucher.

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Definitions:

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Machine Hours

A measure of production output or activity level, using the total hours that machinery is operated as the unit of measure.

Machine Hours

The total running time of a machine during a specific period, often used as a basis for allocating manufacturing overhead.

Annual Overhead Costs

The total expenses related to the operation of a business that are not directly tied to a specific product or service, accumulated yearly.