The Fischer Corporation Uses a Standard Costing System

question 2

Multiple Choice

The Fischer Corporation uses a standard costing system.The following data have been assembled for December: The standard hours allowed for December's production is:

• A)5,400 hours
• B)5,600 hours
• C)5,800 hours
• D)6,000 hours

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet.

Journalizing

The process of recording business transactions in the accounting journals as part of the bookkeeping process.

Transaction

An agreement or exchange between two parties that is recorded and has an economic impact on the finances of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded, before being transferred to the general ledger.