A Recent Approach to Management Accounting That Corrects Many of the Deficiencies

question 44

Multiple Choice

A recent approach to management accounting that corrects many of the deficiencies of traditional accounting systems is called:

• A)appreciation-based costing.
• B)activity-based costing.
• C)activity-biased counting.
• D)allocation-based charging.

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Definitions:

Correcting Entry

A journal entry made to rectify an error in the accounting records, ensuring the accuracy of financial statements.

Equipment

Tangible assets used in operations, not intended for sale, that have a useful life of more than one year.

Supplies

Consumable items or materials used in the day-to-day operations of a business.

Investments

Assets that are purchased with the expectation that they will generate income or appreciate in the future.