Such errors arise when entry in a book or original entry has been made twice and has also been posted twice, are called errors of duplication.
More from this Section
- Indirect materials
Indirect materials are those raw materials which cannot be easily associated with the finished product.
- Dishonored note
A dishonored note is a note that is not paid in full at maturity. A dishonored note receivable is no longer negotiable.
- Direct and indirect fixed costs
A profit center may have both direct and indirect fixed costs. Direct fixed costs relate specifically to one center are incurred for the sole benefit of that center.
- Total overhead variance
Total overhead variance refers to the difference between actual overhead costs and overhead costs applied to work done.
- Trial balance
A trial balance is a list of accounts and their balances at a given time. Customarily, companies prepare a trial balance at the end of an accounting period.
- Asset Turnover Ratio
The asset turnover ratio analyzes the productivity of a company’s assets. It tells us how many dollars of sales a company generates for each dollar invested in assets.
- Predetermined overhead rate
The predetermined overhead rate is a rate that based on the relationship between estimated annual overhead costs and expected annual operating activity.