When Recording Payroll

question 30

Multiple Choice

When recording payroll:

• A)the debit to Work In Process must equal the total direct labor charged to jobs in the subsidiary job cost ledger.
• B)the debit to Factory Overhead must equal the total indirect labor cost charged to jobs in the subsidiary job cost ledger.
• C)the payroll record summarizes the direct labor and indirect charges to the department for the period.
• D)the labor cost summary is prepared from the employees' earnings records.

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Definitions:

Formal Rules

Are the officially sanctioned guidelines and procedures that govern behavior and processes in organizations.

Broadly Defined

Describing concepts or categories in a wide and inclusive manner, often lacking in specific detail.

Decentralized

A system or organization where decision-making powers are distributed among various levels rather than being concentrated at a central point.

Hierarchy

The arrangement of individuals within a system or organization according to power, status, or authority, often depicted as a pyramid structure.