In Terms of Cost Behavior, Telephone Expense and Direct Materials

question 56

Multiple Choice

In terms of cost behavior, telephone expense and direct materials are classified as

• A) variable and fixed, respectively.
• B) fixed and variable, respectively.
• C) mixed and fixed, respectively.
• D) mixed and variable, respectively.

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Definitions:

Adjusting Entries

These are journal entries made in an accounting period to allocate income and expenditures to the period in which they actually occurred.

Journalize Transactions

The process of recording financial transactions in the journal as part of the accounting cycle.

Analyze Transactions

The process of examining financial transactions to understand their nature, how they affect the accounts, and how they should be recorded in the accounting system.

Correcting Entries

Journal entries made to amend previously recorded transactions or entries that were made incorrectly.