________ Are Liabilities for Services Received for Which Payment Has

question 121

Multiple Choice

________ are liabilities for services received for which payment has yet to be made. The most common accounts are taxes and wages.

• A) Notes payable
• B) Accruals
• C) Accounts payable
• D) Accounts receivable

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Definitions:

Overhead Rate

The ratio used to allocate indirect costs to products or services, based on a specific base such as labor hours or machine hours.

Work In Process Account

A financial account used to track the costs associated with the production of goods that are not yet completed.

Two Stage Production

A production process divided into two distinct phases, each with its set of operations or focus areas, to complete the manufacture of a product or service.

Materials Requisitions

A document or electronic request used to formally request materials needed within an organization.