Factors That Shape an Accounting Information System Include the

question 86

Multiple Choice

Factors that shape an accounting information system include the

• A) nature of the business.
• B) size of the firm.
• C) volume of data to be handled.
• D) All of these answers are correct.

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Definitions:

Activity Rates

In activity-based costing, the costs assigned to goods and services based on the specific activities and resources that go into their production or delivery.

Activity Cost Pools

Aggregations of all the costs associated with a particular activity, used in activity-based costing.

Departmental Overhead Rates

Refers to the allocation of indirect costs to specific departments within a company, which is used for cost control and pricing decisions.

Machine Hours

A measure of production activity; the total hours that machines are operating in a manufacturing process.