If the Owner of the Business Wants to See Both

question 36

Multiple Choice

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

• A)the journal
• B)the source document
• C)the chart of accounts
• D)the ledger

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods and services.

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.

Variable Overhead

Variable overhead consists of indirect production costs that vary with the level of output, such as utilities for manufacturing facilities.