A Customer's Check Is Deposited by a Company

question 68

Short Answer

A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.

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Definitions:

Plantwide Overhead Rate

An overhead allocation rate applied uniformly to all products or services based on overall plant activity, ignoring individual departmental differences.

Direct Labor-Hours

Refers to the measurable amounts of work effort contributed directly by laborers on the manufacturing floor towards the production of goods.

Manufacturing Departments

Specialized subdivisions within a manufacturing facility where different stages of the production process are carried out.

Markup

A term used in accounting and finance to describe the difference between the cost of a good or service and its selling price.