Budget data are not journalized in cost accounting systems with the exception of
A)the application of manufacturing overhead.
B)direct labour budgets.
C)direct materials budgets.
D)cash budget data.

Question

Quizplus · Accepted Answer

Budget data related to the application of manufacturing overhead needs to be journalized in cost accounting systems as it is a significant component of product costs. However, other budgets such as direct labour, direct materials or cash budgets are not journalized in cost accounting systems as they are part of financial accounting and not relevant to product costing.

Budget Data Are Not Journalized in Cost Accounting Systems with the Exception