The Process of Assigning Overhead Costs to the Jobs That

question 43

Multiple Choice

The process of assigning overhead costs to the jobs that are worked on is commonly called:

• A) service department cost allocation.
• B) overhead cost distribution.
• C) overhead application.
• D) transfer costing.
• E) overhead cost apportionment.

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Definitions:

Trial Balance

A worksheet in bookkeeping that assembles the balances from each ledger into corresponding totals in debit and credit categories.

Journal Entry

A record in accounting that documents a business transaction in the general ledger, involving at least two accounts.

Land Purchase

The act of acquiring property in the form of land, often for commercial or residential development.

Cash

Currency or coins, along with deposits in bank accounts and other items that are available to pay off debts or to use in transactions immediately.