All of the Following Are Advantages of Using Subsidiary Ledgers

question 113

Multiple Choice

All of the following are advantages of using subsidiary ledgers except they

• A) eliminate errors in individual accounts.
• B) free the general ledger of excessive details.
• C) show in a single account transactions affecting one customer or one creditor.
• D) make possible a division of labor.

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Definitions:

Marginal Product Labor

The additional output produced as a result of employing one more unit of labor, holding other inputs constant.

Marginal Product Capital

This refers to the additional output produced as a result of using one more unit of capital, holding other inputs constant.

Maximum Profit Equilibrium

The point at which a firm achieves its highest level of profit given its production and cost constraints.

Price Labor

The cost associated with hiring workers or the wage that employers pay to their employees for their labor.