The Record of All Accounts and Their Balances Used by a Business

question 190

Multiple Choice

The record of all accounts and their balances used by a business is called a:

• A)Journal.
• B)Book of original entry.
• C)General Journal.
• D)Balance column journal.
• E)Ledger (or General Ledger).

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Definitions:

Variable Factory Overhead

Indirect manufacturing costs that vary with the level of production, such as utilities or materials used in the production process.

Direct Labor-Hours

The total hours worked directly on the production or manufacturing of goods, often used to allocate manufacturing overhead.

Denominator Activity

The level of activity used to compute the predetermined overhead rate.

Applied Factory Overhead

The portion of factory overhead costs assigned to each unit of production, based on an estimated or predetermined rate.