Which statement is not correct?
A) general ledger creates a new cost record upon receipt of a work order from production planning and control
B) cost accounting updates the cost record with data gathered from the materials requisition
C) general ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting
D) cost accounting computes variances and applies overhead to individual cost records

Question

Quizplus · Accepted Answer

The statement that general ledger creates a new cost record upon receipt of a work order from production planning and control is not correct. It is actually the cost accounting department that creates a new cost record upon receipt of a work order from production planning and control. The general ledger's role is to post summary information about the manufacturing process based on a journal voucher prepared by cost accounting.

Which Statement Is Not Correct