Match the Following Terms with Their Definitions

question 88

Multiple Choice

Match the following terms with their definitions.
-Retained earnings

• A)Uses a base year
• B)Inventory and prepaid expenses are subtracted
• C)A liability
• D)Net sales ÷ total assets
• E)Actual sale after returns on discounts
• F)Current assets ÷ current liabilities
• G)What we owe creditors
• H)Data placed side by side
• I)Cash, supplies
• J)Obligations due within one year
• K)Cost of goods for resale
• L)Obligations that are not due for at least one year
• M)Total this period is compared by amount of percent to same total last period
• N)Part of stockholders' equity
• O)What customers owe
• P)Dollars not shown
• Q)Paid in advance
• R)Profit
• S)Revenues and expense for a specific period of time
• T)Prepared as of a particular date
• U)Beginning inventory plus new purchases - ending inventory
• V)True cost of purchases
• W)Includes no plant and equipment assets
• X)Sales - cost of goods sold
• Y)Each liability and equity is analyzed as a percent of the total

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Definitions:

Overhead Rate

A measure used to allocate the costs of indirect expenses to specific cost objects based on a certain base, such as labor hours or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or company to allocate indirect costs to cost objects.

Direct Labor Hours

The total time workers spend on creating a product or service, often used as an allocation base in cost accounting.

Overhead Assigned

The process of allocating indirect costs, such as utilities or rent, to specific cost objects like products or departments.