Which business activity generates an accounting transaction?

 Which business activity generates an accounting transaction?

Testing the product

Manufacturing the product

Scheduling production

Planning production

 

The business activity that generates an accounting transaction is "Manufacturing the product."

 

Manufacturing a product involves the conversion of raw materials into finished goods, which generates costs that must be recorded in the accounting system. As the manufacturing process progresses, costs are incurred for materials, labor, and overhead, and these costs are recorded as accounting transactions in the company's books. The accounting system tracks the costs associated with each stage of the manufacturing process, enabling the company to calculate the total cost of producing each unit of product. Therefore, manufacturing the product is the business activity that generates an accounting transaction.