Net Realizable Value and Physical Measures Are Two Methods for Allocating

question 18

Multiple Choice

Net realizable value and physical measures are two methods for allocating which of the following costs?

• A)direct costs.
• B)opportunity costs.
• C)joint-process costs.
• D)sunk costs.

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Definitions:

Accounts Payable Subsidiary Ledger

A detailed ledger containing all individual creditor accounts, which supports the total balance reported in the company's general ledger account for accounts payable.

Cash Payment Posting

The process of recording cash payments in the accounting records, affecting the balance of cash accounts.

Cash Payments Journal

A financial journal used in accounting to record all cash payments made by a company, including expenses and debt payments.

Accounts Receivable Subsidiary Ledger

A detailed ledger that breaks down the accounts receivable account into individual customer accounts, tracking each customer's balance.