The Accounting Matching Principle Dictates That We

question 127

Multiple Choice

The accounting matching principle dictates that we:

• A)match expenses up with the employees that incur them.
• B)prorate the cost of an asset over its expected economic life.
• C)invoice the customer as soon as the merchandise is produced.
• D)All of the above

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Definitions:

Applied Factory Overhead

The portion of overhead costs that are allocated to produced goods based on a predetermined rate or method.

Direct Materials

Raw materials that can be directly attributed to the production of goods, considered a variable cost in manufacturing.

Continuous Process

A production process in which raw materials are continuously fed into the process and products are continuously output.

Applied Factory Overhead

Costs indirectly associated with manufacturing, including expenses such as utilities and management salaries, allocated to specific products or departments.