Source Documents Generally Help to Improve Accuracy in Transaction Processing

question 32

Multiple Choice

Source documents generally help to improve accuracy in transaction processing because

• A)they specify which information to collect.
• B)logically related data can be grouped in the same area of the document.
• C)they provide directions and steps for completing the form.
• D)All of the above are correct.

---

Definitions:

Avoidable Costs

Avoidable Costs are expenses that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Future Costs

Expenses or expenditures that are expected to be incurred in future accounting periods.

Fixed Costs

Regular, constant expenses that a business incurs regardless of the level of goods or services produced.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be directly traced to the product itself.