Sales Order Number Is Most Likely to Be a Foreign

question 46

Multiple Choice

Sales order number is most likely to be a foreign key in which entity of an expanded revenue cycle REA diagram?

• A)Call on Customers.
• B)Fill Customer Order.
• C)Ship Order.
• D)Take Customer Order.

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Definitions:

Predetermined Overhead Rate

A pre-determined rate used to allocate manufacturing overhead expenses to products, based on a specified activity measure, and calculated prior to the start of a period.

Normal Cost System

A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.

Job Cost Sheet

A document that records the costs associated with a specific job or batch of products, tracking direct labor, direct materials, and applied overhead.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to cost objects during the period.