The Costing Method That First Assigns Costs to Activities and Then

question 4

Multiple Choice

The costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities is called

• A)lean accounting
• B)responsibility centers
• C)activity-based costing
• D)budgeting
• E)outsourcing

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Definitions:

Sold Receivables

The process of a company selling its receivables to a third party to improve its cash flow.

Maturity Date

The date on which the final payment on the bond is due from the bond issuer to the investor.

Note Receivable

A financial asset representing a written promise for a debtor to pay a specified sum of money to the creditor on a determined future date or on demand.

Dishonored Note

A promissory note that has not been paid by the issuer at the time of its due date.