Subsidiary Ledgers Are Used in Manual Accounting Environments

question 54

Multiple Choice

Subsidiary ledgers are used in manual accounting environments.What file is comparable to a subsidiary ledger in a computerized environment?

• A)archive file
• B)reference file
• C)transaction file
• D)master file

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Definitions:

Standard Costing System

A cost accounting method that assigns predetermined costs to production activities, facilitating variance analysis to control costs.

Standard Overhead Rate

The predetermined rate charged for overhead expenses in a standard costing system, based on expected costs and activity levels.

Flexible Overhead Rate

An overhead allocation rate that adjusts for variations in actual activity levels, as opposed to being fixed or static.

Volume Variance

The difference between the expected volume of sales or production and the actual volume, often leading to variations in income or expenses.