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:

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, leading to a stable market condition.

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Smuggled

Illegally transported goods or persons across borders to avoid customs duties or immigration restrictions.