The Explanation Column of the General Ledger

question 151

Multiple Choice

The explanation column of the general ledger

• A)is completed without exception.
• B)is nonexistent.
• C)is used infrequently.
• D)shows account titles.

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Definitions:

Variable Production Cost

Costs that vary in direct proportion to the level of production or volume of output.

Lost Contribution Margin

The amount of income forgone from not selling additional units, calculated as the unit selling price minus variable costs.

Home Security Division

A specialized unit of a company that focuses on producing and selling home security products and services.

Idle Capacity

Refers to the unused production capacity of a company, where equipment and resources are not being used to their full potential due to insufficient demand or operational inefficiencies.