The Type of Cost Accounting System Best Suited to a Particular

question 53

Multiple Choice

The type of cost accounting system best suited to a particular company depends on:

• A)The nature of the company's manufacturing operations.
• B)The requirements set forth by the FASB.
• C)Government regulations.
• D)The type of cost drivers available.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure accuracy and consistency in financial records.

Outstanding Checks

Outstanding checks are checks that have been written and recorded in the payor's ledger but have not yet been cashed or cleared by the bank.

Deposits In Transit

Bank deposits that have been made but not yet credited to the business's bank account, typically appearing on a bank reconciliation statement.

Service Charges

Fees imposed by a company for the provision of a service, often applied in banking, brokerage, and hospitality industries.