Tracing Selected Items from the Payroll Register to Approved,employee Time

question 11

Multiple Choice

Tracing selected items from the payroll register to approved,employee time cards provides evidence that ________.

• A)internal controls relating to payroll disbursements were operating effectively
• B)payroll cheques were signed by an appropriate officer independent of the payroll preparation process
• C)only bona fide employees worked and their pay was properly computed
• D)employees worked the number of hours for which their pay was computed

Understand and identify the concepts of diminishing marginal returns and marginal cost.

Differentiate between short-run and long-run cost structures and their implications for firm decision-making.

Recognize the relevance and implications of sunk costs and the sunk cost fallacy in economic decision-making.

Interpret diagrams related to cost curves, including total costs, average costs, and marginal costs.

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Definitions:

Predetermined Overhead Rate

An allocated rate used to apply manufacturing overhead to products or job orders, estimated at the start of an accounting period.

Job-Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used when products or services are distinct and customized.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

Automated Jointer

A machine tool used in woodworking that automatically creates a flat surface along the length of a board or piece of lumber.