A Basic Assumption of Accounting Assumes That the Dollar Is

question 62

Multiple Choice

A basic assumption of accounting assumes that the dollar is

• A) unrelated to business transactions.
• B) a poor measure of economic activities.
• C) the common unit of measure for all business transactions.
• D) useless in measuring an economic event.

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Definitions:

Production Increases

A rise in the amount of goods and services produced over a given period of time by a business or economy.

High-low Method

A technique used in accounting and finance to estimate the variable and fixed components of a company's costs based on the highest and lowest levels of activity.

Total Fixed Costs

The sum of all expenses that remain constant regardless of the level of production or business activity.

Productive Month

A period in which there is a high level of output or work accomplishment, often measured in terms of productivity metrics in a business context.