Manufacturing Overhead Is Also Referred to as ________

question 59

Multiple Choice

Manufacturing overhead is also referred to as ________.

• A) indirect manufacturing costs
• B) direct manufacturing costs
• C) prime costs
• D) period costs

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Definitions:

Ledger Accounts

Individual records that summarize all the financial transactions regarding a specific aspect of a business's financial activity, such as sales, accounts payable, or owner's equity.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, serving as a preliminary step to financial statement preparation.

Chart of Accounts

A systematic list of all account titles and numbers used by a company, organized to support the recording of transactions.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to verify that the ledger accounts are correctly balanced.