Which of the Following Items Would Be Associated with Both

question 190

Multiple Choice

Which of the following items would be associated with both a traditional cost accounting information system and an activity based cost information system?

• A)Overhead is assigned on a plant-wide rate based on direct labor hours.
• B)Customer service costs are assigned to products using number of complaints as the activity driver.
• C)Direct labor cost is assigned to products using direct tracing.
• D)None of these.

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Definitions:

Absolute Sureties

Individuals or entities that guarantee the performance of a debtor or contractual obligations without any conditions.

Financing Statement

A document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in secured transactions.

Trade Name

The commercial name under which a business operates and is known to the public, distinct from the business's legal name.

Collateral

An asset pledged by a borrower to secure a loan, which can be seized by the lender if the loan is defaulted on.