Totals on the Debit and Credit Sides to Determine the Balance

question 44

Multiple Choice

Totals on the debit and credit sides to determine the balance of an account are known as

• A) rulings.
• B) credits.
• C) debits.
• D) footings.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in product costs.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume.

Absorption Costing

An accounting method that includes all of the manufacturing costs in the cost of a product, including direct labor, materials, and overhead.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.