The Last Step of the Accounting Cycle Is to Prepare

question 88

True/False

The last step of the accounting cycle is to prepare a post-closing trial balance.

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Definitions:

Direct Labor-Hours

Comprehensive work time recorded by employees who are directly engaged in producing goods.

Denominator Level

The level of activity chosen to allocate fixed costs in absorption costing, often representing capacity or expected production volume.

Variable Overhead Rate

the rate at which variable overhead costs are applied to units of production, often used in calculating the total cost of producing a product.

Fixed Manufacturing

Costs associated with manufacturing that remain constant, regardless of the level of production, such as rent for factory premises.