(Appendix 5A)All Differences Between Super-Variable Costing and Absorption Costing Are

question 6

Multiple Choice

(Appendix 5A) All differences between super-variable costing and absorption costing are explained by:

• A)the accounting for direct materials and manufacturing overhead costs.
• B)the accounting for direct labor and direct materials.
• C)the accounting for direct labor and manufacturing overhead costs.
• D)the accounting for manufacturing overhead costs.

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Definitions:

Bank Reconciliation

The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger.

Debit Memo

A document issued by a vendor to a customer, recording an increase in the amount a customer owes to the vendor due to various reasons like returned goods or underbilling.

Bank Service Charges

Fees charged by a bank to its customers for account maintenance, transactions, and other banking services.

Outstanding Checks

Checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.