The First Step in the Posting Process Is Recording the

question 39

Multiple Choice

The first step in the posting process is recording the

• A) journal page number in the ledger account.
• B) ledger account number in the journal.
• C) date in the ledger account.
• D) explanation in the journal.
• E) debit account and amount.

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Definitions:

Total Variable Cost

The sum of all costs that vary directly with the level of output or production, such as materials and labor directly used in manufacturing.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activities.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Average Fixed Cost

The fixed costs of production divided by the number of units produced, showing how fixed costs per unit change with changes in output.