The Method That Restates All Overhead Entries in the General

question 112

Multiple Choice

The method that restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates is called

• A)the adjusted allocation rate approach
• B)the proration approach
• C)the write-off of cost of goods sold approach
• D)None of these answers are correct.

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Definitions:

Deposits

Funds placed into a bank account or with some other entity for safekeeping, which can include money put in savings or checking accounts.

Electronic Funds Transfers

The electronic transfer of money between accounts by consumer electronic systems rather than the exchange of cash, checks, or other paper documents.

Internal Control Of Cash

Procedures and measures implemented by a business to monitor, manage, and protect its cash transactions and holdings.

Voucher System

A control mechanism in accounting to approve and document all disbursements of cash for business transactions.