If Physical Observation Can NOT Be Used to Identify the Exact

question 53

Multiple Choice

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

• A)driver tracing.
• B)allocation.
• C)estimation.
• D)none of these.

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Definitions:

Sales Returns

Goods returned by customers after purchase, leading to a reduction in sales revenue.

Debit Balance

An accounting entry that represents the total amount debited from an account, exceeding the credits made into it.

Sales Discount

A sales discount is a reduction in the price of a product or service offered by a seller to a buyer, usually for early payment or to incentivize purchase.

Purchase Discount

A reduction in the price paid for goods or services if payment is made within a specified time frame.