When Using a Standard Costing System,which of the Following Should

question 16

Multiple Choice

When using a standard costing system,which of the following should be recorded for labor as a product is being made?

• A)Debit wages payable for the actual hours of labor at the standard rate and credit work in process for the actual hours worked at the standard rate
• B)Debit payable wages for the standard hours at the standard rate and credit work in process for the actual hours at the actual rate
• C)Credit wages payable for the standard hours at the standard rate and debit work In process for the standard hours at the actual rate
• D)Credit wages payable for the actual hours at the actual rate and debit work in process for the standard hours at the standard rate

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Definitions:

Tax Deduction

An expense that a taxpayer is allowed to deduct from taxable income, thereby reducing the overall tax liability.

Financial Leverage

The use of borrowed money (debt) to amplify the potential return of an investment.

Corporate Interest

Interest that a corporation pays on its debt obligations, which can impact its financial performance and tax liabilities.

EBIT

EBIT stands for Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.