An Automobile Company Purchases Spark Plugs, on Cash, for the Production

question 93

Multiple Choice

An automobile company purchases spark plugs, on cash, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

• A)purchases journal
• B)general journal
• C)cash payments journal
• D)sales journal

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Definitions:

Indirectly Related

Pertaining to elements or factors that have an influence on a situation or outcome but are not a direct cause or effect.

Overhead Rate

The overhead rate is a calculation used to determine how much of indirect costs (overhead) a business should allocate to each unit of production or service.

Multiple Production

This term could refer to the operation of producing goods in multiple quantities or varieties, but it's not a standard accounting or business term. Likely, it means batch or mass production processes.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.