Accounting for the Incurrence of __________ Does Not Change Significantly

question 14

Multiple Choice

Accounting for the incurrence of __________ does not change significantly between job order costing and process costing.

• A) selling expenses
• B) direct materials and conversion costs
• C) direct materials costs
• D) conversion costs

---

Definitions:

Equipment On Account

The acquisition of equipment that is recorded on credit, where payment is deferred to a later date.

Recording Process

The systematic documentation of a company's financial transactions in the appropriate accounts of its accounting system.

Debit Entries

Bookkeeping entries that increase assets or expenses, or decrease liabilities, equity, or income.

Credit Entries

Bookkeeping entries that increase the balance of liability, revenue, or equity accounts, or decrease the balance of an asset or expense account.