A Business Makes a Cash Payment for Advertising Expense

question 7

Multiple Choice

A business makes a cash payment for advertising expense.Which account is debited?

• A) Cash
• B) Service revenue
• C) Accounts receivable
• D) Advertising expense

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Definitions:

Activity Allocations

This refers to the process of assigning costs to specific cost objects based on their use of activities, often used in management accounting for better cost control.

Single Plantwide Factory Overhead Rate

A costing method where a single overhead rate is applied to all units produced, regardless of the department in which they were manufactured.

Production Departments

Specific departments within a manufacturing facility focused on producing goods, often involving assembly lines or production teams.

Manufacturing Processes

A set of methods and procedures used in the transformation of raw materials into finished goods or products.