What Is an Advantage of Using a Raw Materials Subsidiary

question 180

Multiple Choice

What is an advantage of using a raw materials subsidiary ledger?

• A) It includes only one large record for all materials used, so materials details are combined into one location.
• B) It is less detailed than the general ledger, giving a broader overview for decision purposes.
• C) It allows for better control of inventory because it tracks each type of material used in production.
• D) It contributes to easier recordkeeping since the sum of the balances of the subsidiary ledger do not have to match general ledger totals.

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Definitions:

Narrow Span of Management

An organizational structure where managers supervise a small number of subordinates, allowing for more detailed oversight and personalized management.

Proximity

The state of being near or close in space, time, or relationship, often impacting decision-making or behavior in various contexts.