An Accounting System Where Costs Are Assigned Due to the Cause-And-Effect

question 31

Multiple Choice

An accounting system where costs are assigned due to the cause-and-effect relationship between costs and the activity that drives the cost is known as:

• A) activity-based costing system.
• B) net present value (NPV) system.
• C) breakeven analysis system.
• D) CAMPARI activity system.
• E) cloud computing system.

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Definitions:

Courses of Action

Refers to the different strategies or paths that can be taken to achieve a goal or solve a problem.

Controlling

A phase in the management process that consists of monitoring the operating results of implemented plans and comparing the actual results with the expected results.

Choosing Goals

The process of identifying desired outcomes or objectives to guide decision-making and actions.

Managerial Accounting

The practice of analyzing, interpreting, and providing information to management for planning, decision making, and operational control.