Match each of the following phrases with the term (a-g) that it most closely describes.
-A subsidiary ledger that maintains a separate account for each type of material
A)Job order cost system
B)Process cost system
C)Activity-based costing
D)Underapplied overhead
E)Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question

Quizplus · Accepted Answer

The materials ledger is a subsidiary ledger that maintains a separate account for each type of material.

Answer: A
 The job order cost system is a costing method used for unique products or services, where costs are accumulated by job or order, and a separate job cost record is maintained for each job.

Answer: B
 The process cost system is a costing method used for large quantities of identical products or services, where costs are accumulated by process or department, and a separate process cost record is maintained for each process.

Answer: C
 Activity-based costing is a costing method that assigns costs to products or services based on the activities that drive them, rather than on the volume of the products or services.

Answer: E
 Overapplied overhead occurs when a company assigns more overhead to production than actually incurred.

Answer: D
 Underapplied overhead occurs when a company assigns less overhead to production than actually incurred.

Answer: F
 The finished goods ledger is a subsidiary ledger that maintains a separate account for each type of finished product.

Match Each of the Following Phrases with the Term (A-G)