In Budgeting at the Activity Level,the Cost Behavior of Each

question 83

Multiple Choice

In budgeting at the activity level,the cost behavior of each activity is defined with respect to

• A)direct labor hours.
• B)machine hours.
• C)the activity output measure.
• D)the activity's resource driver.
• E)none of these.

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Definitions:

Paid-In Capital

Total amount of cash and other assets paid into the corporation by stockholders in exchange for capital stock.

Stock Dividend

A company rewards its shareholders with extra shares, foregoing the option to distribute cash.

Depreciation Expense

Allocating the price of a tangible asset consistently throughout its expected lifespan.

Prior Period Adjustment

An amendment to the financial statements, correcting errors from previously reported periods or adjustments due to changes in accounting policies.