Entries into the General Ledger System (GLS) Can Be Made

question 33

Multiple Choice

Entries into the General Ledger System (GLS) can be made using information from

• A) the general journal
• B) a journal voucher which represents a summary of similar transactions
• C) a journal voucher which represents a single, unusual transaction
• D) all of the above

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a unit of product.

Inventory Buildup

The accumulation of products or materials in excess of demand, often leading to increased storage costs and reduced cash flow.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, salaries, and insurance.

Variable Inventory Costs

Variable inventory costs fluctuate with changes in production volume, including costs like raw materials and direct labor.