Once the Amounts of the Service Department Allocations Have Been

question 22

Multiple Choice

Once the amounts of the service department allocations have been determined,a journal entry should be prepared to record the distributions,the result of which is:

• A)debit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• B)credit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• C)debit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.
• D)credit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

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Definitions:

Quotas

Restrictions set by a government on the amount of a particular good that can be imported or produced within a certain timeframe.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Absolute Advantage

The ability of a country, individual, or firm to produce more of a good or service than competitors using the same amount of resources.

Opportunity Cost

The cost of forgone alternatives when a decision is made to choose one option over others.