The Ledger Accounts Are Typically Arranged in

question 21

Multiple Choice

The ledger accounts are typically arranged in

• A)chronological order.
• B)alphabetical order.
• C)financial statement order.
• D)order of appearance in the journal.

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Definitions:

Overhead Applied

An accounting method that allocates overhead costs to specific cost objects, such as products or jobs, based on a pre-determined rate or base.

Job Order Costing System

An accounting system used to assign costs to specific jobs or orders, tracking the direct materials, direct labor, and manufacturing overhead per job.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include utilities, depreciation of factory equipment, and salaries of maintenance personnel.

Direct Materials

Direct materials are raw materials that are directly incorporated into a final product and are directly attributable to the product being manufactured.