A Standard Cost Accounting System Can Be Used for Which

question 51

Multiple Choice

A standard cost accounting system can be used for which of the following costs?
I. Direct labour
II. Direct materials
III. Indirect materials
IV. Manufacturing overhead

• A) I and II only.
• B) II and IV only.
• C) I, II and IV only.
• D) I, II, III and IV.

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Definitions:

Notes Receivable

Represents claims against others, recorded by promissory notes, for money to be paid to the company.

Journal Entry

The recordation of a financial transaction in an accounting system, showing the accounts and amounts debited and credited.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collectible.

Adjusting Entry

An accounting entry made at the end of an accounting period to record unrecorded income or expenses for that period.