Match the terms with the definitions.
-The account that includes all the materials (both direct and indirect) acquired to be used in production.

Question

Quizplus · Accepted Answer

Materials Inventory is the account that includes all the materials acquired to be used in production.

Answer: A
 A cost accounting system is a system of accounting that includes all expenditures viz. direct labor, direct materials, and manufacturing overhead essential for running a business.

Answer: C
 Direct labor refers to the salary or wages paid to laborers who are directly involved in the production process.

Answer: E
 Factory overhead refers to all indirect costs incurred during the production process.

Answer: F
 Predetermined overhead rate is a fixed rate used to apply overhead costs to different job orders.

Answer: I
 Indirect labor refers to the salary or wages paid to laborers who are not directly involved in the production process.

Answer: J
 A job cost ledger is a record that tracks all the costs associated with a specific job order.

Answer: H
 A finished goods ledger is a record that tracks the costs and quantities of finished goods produced by a company.

Answer: D
 Underapplied overhead is a situation where the actual overhead costs incurred in the production process are less than the amount of overhead costs allocated using the predetermined overhead rate.

Match the Terms with the Definitions