Which of the Following Is a Disadvantage of Using the General

question 3

Multiple Choice

Which of the following is a disadvantage of using the general journal for recording transactions?

• A)Using the general journal provides no grouping of transactions by type.
• B)Using the general journal lessens the risk of omission of entries.
• C)Using the general journal provides more details on each transaction.
• D)Using the general journal makes fraud easier to discover.

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Definitions:

Variable Overhead Efficiency Variance

This is the difference between the expected (standard) cost of variable overheads based on actual production outputs and the actual variable overhead costs incurred.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of materials.

August

The eighth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.