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:

Problem/Causes/Solution Pattern

A method of organizing information in communication that identifies issues, their reasons, and proposed fixes.

Symptoms

Signs or indications of the existence of a problem, illness, or specific condition.

Solutions

Answers or methods for solving a problem or dealing with a difficult situation.

Hostile

Displaying or characterized by antagonism or opposition; often refers to takeovers in business where the acquiring company makes an offer directly to shareholders, bypassing the target company's management.