The Posting Reference Column in the Journal Is Used For

question 64

Multiple Choice

The posting reference column in the journal is used for:

• A) recording the source documents identification number.
• B) recording the account number to which the entry was posted.
• C) recording the posted account's initials.
• D) recording the initials of the person who did the posting.

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Definitions:

Absorption Costing

A financial calculation approach that encompasses both direct and indirect expenses related to producing a product.

Variable Costing

An accounting method that only includes variable production costs (costs that change with the level of output) in the cost of goods sold and treats fixed costs as period costs.

Manufacturing Costs

The total costs incurred in the process of producing or manufacturing goods.

Absorption Costing

An accounting approach that factors in every manufacturing expense, like direct materials, direct labor, and both types of overhead (variable and fixed), into the product pricing.