A Gain on Disposal Is Recognized When the Selling Price

question 82

Multiple Choice

A gain on disposal is recognized when the selling price of the asset is ________ the book value.

• A)greater than
• B)equal to
• C)less than
• D)greater than or equal to

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Definitions:

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches of goods, typically used in manufacturing or service industries where each job is unique.

Direct Labor-Hours

A measurement of the time workers spend directly manufacturing a product, often used to allocate manufacturing overhead.

Fixed Manufacturing Overhead Cost

Overhead costs related to manufacturing that remain constant regardless of the level of production, such as factory rent and salaries of supervisors.

Variable Manufacturing Overhead

Costs in manufacturing that change with the level of production output, like utilities or raw materials.