A Job That Shows Low Profitability May Be the Result

question 286

Multiple Choice

A job that shows low profitability may be the result of:

• A)wasting direct materials.
• B)underpricing the job.
• C)inefficient direct manufacturing labour.
• D)All of these answers are correct.

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Definitions:

Adjusting Journal Entries

Adjusting journal entries are made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Debit Portion

The segment of a financial transaction recorded on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities or equity.

Expense Account

An account that tracks the costs incurred by a company in its operational activities, such as rent, utilities, and salaries.

Credit Portion

The segment of a financial transaction that records a decrease in assets or an increase in liabilities on a balance sheet.