Listed Below Are Ten Terms Followed by a List of Phrases

question 127

Multiple Choice

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
-_____ The total amount owed to a company from credit sales to customers.

• A)Accounts receivable
• B)Allowance method
• C)No effect
• D)Direct write-off method
• E)Net realizable value
• F)Aging method
• G)Bad debt expense
• H)Receivables written off
• I)Decrease assets and increase expenses
• J)Allowance for uncollectible accounts

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Overhead Rate

A measure used in cost accounting to allocate overhead costs to produced units, typically expressed as a percentage or a ratio.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.

Direct Labor Costs

Expenses related to employees who are directly involved in the production of goods or services, as opposed to administrative or managerial staff.