A System of Assigning Costs to Departments and Products on the Basis

question 23

Multiple Choice

A system of assigning costs to departments and products on the basis of a variety of activities instead of only one allocation base is called:

• A)Plantwide overhead costing.
• B)A cost center accounting system.
• C)Controllable costing.
• D)Activity-based costing.
• E)Performance costing.

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Definitions:

Balance Sheet

The balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

is a financial statement that shows a company’s revenues, expenses, and profits over a specific period, providing insight into its profitability.

Debt-To-Equity Ratio

A ratio assessing the comparative contribution of debt and shareholder equity in the capital structure used for a company's assets.

Balance Sheet

A financial statement that presents a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.