The Statements Concerning the Matching Concept That Is Correct Is

question 4

Multiple Choice

The statements concerning the matching concept that is correct is:
i.The matching concept forms the basis of historical cost accounting
ii.The matching concept forms the basis of accrual accounting
iii.In practice proper matching is a relatively easy task
iv.In practice proper matching is a relatively difficult task

• A)i.iii
• B)ii.iii
• C)i.iv
• D)ii.iv

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Definitions:

Direct Labour

Direct labour relates to the employees or workers directly involved in the production of goods or services, whose wages are considered a direct cost of production.

Overhead Budget

A financial plan that estimates the expected overhead costs for a business over a certain period.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.

Indirect Labour

Labor costs associated with employees who support the production process but do not directly work on the production of goods or services, such as maintenance staff and supervisors.