Which of the Following Activities Is NOT Associated with the Cost

question 120

Multiple Choice

Which of the following activities is NOT associated with the cost management information system?

• A)preparing a cost of quality report
• B)preparing a performance report that compares actual costs to budgeted costs
• C)determining the cost of a customer
• D)using future expected earnings to estimate the price of a share of common stock

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Definitions:

Consolidation

The process of combining financial statements from several departments or subsidiaries into a unified set.

Merger

The combination of two or more companies into a single entity, where one survives and the others cease to exist as separate entities.

Synergy

A situation in which two companies operating together under one ownership perform better than the sum of their separate performances. A popular reason claimed for mergers.

Net Income

The financial profit a company has after subtracting all its expenses from its total revenue, indicating its profitability over a specified period.