The Entry to Record the Incurrence of an Expense Will

question 11

Multiple Choice

The entry to record the incurrence of an expense will include:

• A)a debit to Capital and a credit to Cash.
• B)a debit to the expense and a credit to Vouchers Payable.
• C)a debit to the expense and a credit to Accounts Payable.
• D)a debit to Vouchers Payable and a credit to the expense.

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Definitions:

Variable Costs

Costs that change in proportion to the activity or volume of business, such as materials and labor.

Total Costs

The complete cost of production of goods or services, which includes both fixed and variable costs.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.

Total Variable Cost

The total variable cost is the sum of all variable expenses that change in proportion to the volume of output or production.