____ Is Devoted to Providing Information for External Users

question 8

Multiple Choice

____ is devoted to providing information for external users.

• A)Management accounting
• B)Financial accounting
• C)Internal accounting
• D)Cost accounting

---

Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services by identifying cost drivers.

Order Processing

The sequence of steps taken by a company to fulfill a customer order, from order receipt to delivery, including invoicing and shipment.

Idle Capacity

Unused or underused production capacity, where the facility is capable of producing more but is not due to lack of demand or other factors.

Activity-Based Costing

This costing method assigns overhead and indirect costs to specific activities, thus providing a more accurate reflection of the costs associated with producing specific products or services.