Prior to 1973, Generally Accepted Accounting Principles Were Established

question 6

Multiple Choice

Prior to 1973, generally accepted accounting principles were established

• A) by the Financial Accounting Foundation.
• B) by the Securities and Exchange Commission.
• C) under the direction of the American Institute of Certified Public Accountants.
• D) by the individual states.

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Definitions:

Activity-Based Costing

Activity-based costing is an accounting method that identifies and assigns costs to specific activities, facilitating more precise economic analysis of various business processes.

Activity Rates

Rates used in activity-based costing to assign costs to products or services based on the amount of an activity they consume.

Activity-Based Costing

A method of costing that identifies individual activities as the fundamental cost objects and uses the costs of these activities to compute the costs of various products or services.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, often used as a basis for allocating overhead costs.